In 20X1, Melvane could not distinguish the phases of its project for a new industrial adhesive and recognised 250,000 as an expense. In early 20X2, it sets up tracking that clearly separates the two phases; on 1 March 20X2, it demonstrates for the first time all the recognition criteria of the development phase. The technical director asks for the 250,000 of 20X1 to be reclassified as an asset. Which answer is correct?