You work for a consulting firm. Smith Marc holds a large proportion of shares in Newera Ltd, an Australia pharmaceutical company. Smith Marc asks you to provide opinions on the following two issues

(a) Newera Ltd adopts Australian Accounting Standards. Does the accounting treatments of internal and external intangible assets provide useful information to the users of financial statements? re accounted for in the financial statements provide useful information? Explain your opinion.

(b) The CEO of Newera Ltd approaches retirement age, and her current compensation is composed of a fixed salary and bonus linked to accounting performance. Discuss how the application of AASB 138 Intangible assets may affect her decision-making of R&D activities. Discuss whether Newera Ltd needs to and how to redesign her compensation package to align her interest with shareholders' interest.