AllTech Limited is a software development company that has been working on a new mobile application for the past year. The application is expected to generate significant revenues for AllTech Limited once it is launched in the market. The following information relates to the costs incurred by AllTech Limited during the development phase of the application:

$$ Salaries of the software engineers and programmers: R$550000$

$$ Fees paid to an external consultant for technical advice: R$200000$

$$ Cost of testing the application on various devices: R$90000$

$$ Cost of registering the trademark of the application: R$100000$

$$ Cost of marketing and advertising the application before launch: R$20000$

REQUIRED:

With reference to the requirements of IAS $38,$ discuss which of the costs incurred by

AllTech Limited can be recognised as intangible assets and why. In your discussion,

include how AllTech Limited should measure the intangible assets at initial recognition as well as at subsequent reporting dates.

$(29$ marks$)$