You are employed at Help$-$Me Consulting. Help$-$Me Consulting provides accounting

and tax consulting services to various clients. You have been assigned to Eazy Baby

by your senior manager in order to assist them with the following:

EazyBaby Ltd $($EazyBaby$)$ is a manufacturer of baby monitors, including breathing

monitors, audio monitors and video monitors. EazyBaby makes the adventure of

parenthood easier with their products. It uses innovative, research$-$based designs and

the latest technology. Eazybaby$$s financial year end is $31$ March $20\mathrm{.}19.$

It is the company$$s policy to capitalise the product development costs and to measure

all intangible assets according to the cost model. The schedule of the capitalised

development costs was prepared by the financial accountant and reflects the following

information:Included in this amount is R$140000$ that was written off in the prior year and capitilised in the current financial year.Notes $1.$ There is continuously new research in respect of the proposed new generation baby monitor system. It is a highly advanced product in comparison to the previous version and the technical feasibility of the product will be done in the next financial year. The production will start later during the current year. $2.$ On $1$ April $2017$ EazyBaby correctly recognised an intangible asset at a cost of R$1400000$ arising from the development of the baby movement tracking device. On this date it was available for use and management estimated that the useful life is five years and it has a R$300000$ residual value. Both the useful life and the residual value remained unchanged. On $31$ March $20\mathrm{.}19$ it was determined that the market of the device declined significantly. On $31$ March $20\mathrm{.}19$ the value in use and fair value less costs to sell of this device was estimated as R$800000$ and R$880000$ respectively$\mathrm{.}3.$ The project of a new technologically advanced video monitor began in $20\mathrm{.}16,$ however in $20\mathrm{.}16$ management was not convinced of the potential future demand of the monitor and was unsure of their ability to sell the product. During the current financial year a new feature to the video monitor was developed, which allows parents to sing lullabies to their babies. Management was ecstatic about this new development and decided to capitilise the costs $($R$140000)$ of the project incurred in the previous financial year. The technicians are still in the process of developing the video monitor, but EazyBaby is unsure if they will be able to obtain external finance to fund this development.REQUIRED MARKS$1.$ Write a memorandum to the financial director of EazyBaby Ltd$,$ providing a brief discussion of the correct accounting recognition and measurement of all aspects that relate to the product development costs in the financial statements of EazyBaby Ltd for the year ended $31$ March $20219$