Question

GSK is a large pharmaceutical business involved in the research and development of viable new drugs. It commenced an initial investigation into the viability of a new drug on 1 February 2015 at a cost of $40,000 per month. On 1 August 2015 GSK were able to demonstrate the commercial viability of the new drug and intend to sell it on the open market once fully complete.
Costs subsequent to 1 August 2015 remained at $40,000 per month. On 31 December 2015, GSK’s reporting date, the drug was not yet complete but it is believed that by mid-2016 the drug will be available for sale. The finance director is confident of the success of the drug’s sales that he wishes to revalue the intangible at the reporting date, using a discounted future cash flow model to establish the fair value.

Answer 1

Answer:

I am not so good at this business study