Under MFRS 138 Intangible Asset, research expenditure cannot be recognized as an intangible asset. ABC Bhd. has incurred the following costs for development costs: 1. selling, administration and general overheads 2. inefficiencies and initial operating losses 3. training staff to use the asset 4. materials and services consumed 5. direct staff costs 6. patent costs Required: a) State the criteria which must be met so that development expenditure could be recognized as an intangible asset. (6 marks) b) Identify the costs that could be capitalized as Development costs. (6 marks)