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Soda-Soda (Pty) Ltd is a soft drink manufacturer and distributor. The company has a 30 June financial year-end. The company purchased the Snapple soft drink brand name 8 years ago from a competitor and has since manufactured and distributed the Snapple soft drink. The acquisition cost of the brand was R900 000 and was appropriately capitalised. The Snapple brand name has not been amortised in Soda-Soda (Pty) Ltd's accounting records since the date of acquisition from the competitor. The accountant of SodaSoda (Pty) Ltd was of the opinion that the Snapple brand name should not be amortised because the brand was already 20 years old at the acquisition date and there was no indication that demand for this soft drink was diminishing. In recent years, the sales of the Snapple soft drink have however diminished. After much research conducted by the marketing department, a conclusion has been reached that the diminished sales are due to outdated packaging that is not environmentally friendly as well as outdated branding. In April 2023, the Snapple soft drink was re-launched as 'Snapplify' with more modern branding and environmentally friendly packaging. The costs to re-launch the soft drink amounted to R520 000. Due to the relaunch, internal projections now indicate an expected increase in sales, and, therefore, the cost of the launch was capitalised to the Snapplify soft drink brand name. The previous brand name, Snapple, with a carrying amount of R900 000 was written off in full in the current financial year ended 30 June 2023. In accordance with IAS 38 Intangible Assets, critically analyse the treatment of the Snapple and Snapplify brands separately, explaining whether the treatment is correct or incorrect and justify your reasons with reference to International Financial Reporting Standards. Your response should address the following, separately for Snapple and Snapplify: - Recognition and initial measurement of the capitalisation of costs (5 marks) - Subsequent measurement (7 marks) - Derecognition (2 marks) - Conclusion and advice

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