You are a partner of Finesse Consulting, an independent financial advisory company. One of your clients, Cobad Limited, developed a new software programme during the financial year ended 31st December 2020. The programme was developed for pharmaceutical companies manufacturing vaccines for the new pandemic, Coslax 18. The management of Cobad Limited was uncertain about the disclosure of the development cost in their financial statements and asked you for advice. Cobad Limited provided the following information: 1. Development costs of the new programme amounted to R1 200 000. Marketing of the new programme will commence on the 1 March 2021. 2. The useful life of the programme was estimated at four years. 3. The budgeted sales of the programme, determined by market research, were as follows: a. Year 1 R1 000 000 b. Year 2 R1 600 000 C. Year 3 R1 900 000 d. Year 4 R 500 000 REQUIRED: 4.1 What is the definition of development in terms of IFRS (International Financial Reporting Standards) (2) 4.2 Should the development costs of R1 200 000 should be capitalised or expensed for the year ended 31st December 2020. Your answer must be in terms of IFRS (International Financial Reporting Standards). (6)