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Chapter 3

1.5 Amortisation

Intangible assets with a finite useful life are amortised over that life, usually on a
straight-line basis, unless another basis is more appropriate.

Intangible assets with an indefinite useful life are not amortised, but are tested
annually for impairment.

1.6 Internally generated intangible assets

Generally, internally generated intangible assets cannot be capitalised, as the cost of
their creation is not capable of reliable measurement.

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