44   Which of the following statements are correct?

(1)   Capitalised development expenditure must be amortised over a period not exceeding five years

(2)   Capitalised development costs are shown in the statement of financial position under the heading of non-current

assets

(3)   If certain criteria are met, research expenditure must be recognised as an intangible asset

A    2 only

B    2 and 3

C     1 only

D     1 and 3

45   IAS 28 Investments in Associates governs the identification of associates.

Which of the following would suggest that an entity is an associate of another entity?

A    The investing entity has owned its share since the incorporation of the investee entity

B    The investor holds greater than 20% but less than 50% of the voting power of the investee

C    The investing entity has some influence over other entities in the same industry

D    The investor often trades with the investee

47   Alpha   received   a   statement   of   account   from   a   supplier   Beta,   showing   a   balance   to   be   paid   of   $8,950.   Alpha’s

purchase ledger account for Beta shows a balance due to Beta of $4,140.

Investigation reveals the following:

(1)  cash paid to Beta of $4,080 has not been accounted for by Beta

(2)  Alpha’s ledger account has not been adjusted for $40 of cash discount disallowed by Beta

What discrepancy remains between Alpha’s and Beta’s records after allowing for these items?

A    nil

B    $690

C    $770

D    $730