ILLUSTRATION 1. Arrog Ltd. Is in the process of developing a new production method. During the financial year ending 31st March, 2015, total expenditure incurred on the development of this production method was $ 82,00,000. The production method met the criteria as an intangible asset on 1st January, 2015 and expenditure incurred till this date on the development of the new method was $ 48,00,000. Further expenditure incurred on the new method was $ 60,00,000 for the financial year ending 31st March, 2016 and the recoverable amount of the know-how embodied in the new method for this financial year is $ 45,00,000. You are required to calculate: (i) The expenditure to be shown in Statement of Profit and Loss for the financial year ended 31st March, 2015 ignoring amortisation cost; (ii) The carrying amount of the intangible asset on 31st March, 2015; the expenditure to be shown in Statement of Profit and Loss for the financial year ended 31st March, 2016 ignoring amortisation cost; and (iv) The carrying amount of the intangible asset as at 31st March, 2016