Warmington Plc produces a range of childrens toys and markets and sells them under its internally developed brand, KidzToys. The brand is now highly respected, and the products are regarded as must have toys. On 1 July 20X3 Fraser Plc acquired the whole of Warmington Plc for 50 million. At this date, a brand valuation expert valued the KidzToys brand at 15 million on the basis of a useful life of 5 years. Other net assets were deemed to have a fair value of 25 million.

Assuming that the goodwill arising on the acquisition of Warmington was not impaired at 30 June 20X4, what amounts for intangible assets should be recognised in Fraser Plcs consolidated financial statements at 30 June 20X4 in respect of this transaction?

Would this transaction affect the income statement for the period ended 30 June 20X4? If so, what is the effect and how much is it?