Page 30 - PowerPoint Presentation

INTANGIBLE ASSETS

Useful Life

• An intangible asset with a finite useful life is amortised,
and an intangible asset with an indefinite useful life is

not. (IAS 38.89)

• The term "indefinite" does not mean "infinite". The

useful life of an intangible asset reflects only that level
of future maintenance expenditure required to

maintain the asset at its standard of performance

assessed at the time of estimating the asset's useful

life, and an entity's ability and intention to reach such a
level. (IAS 38.91)

• The useful life of an intangible asset that arises from

contractual or other legal rights shall not exceed the

period of the contractual or other legal rights, but may

be shorter depending on the period over which the
entity expects to use the asset.

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