Page 10 - Finac1 Test 3 slides - 2. Intangible Assets
P. 10
TEST 3 PREPARATION
Definitions - 38.08
• Amortisation is the systematic allocation of the depreciable
amount of an intangible asset over its useful life.
• Depreciable amount is the cost of an asset, or other
amount substituted for cost, less its residual value.
• Useful life is:
• the period over which an asset is expected to be available for use
by an entity, or
• the number of production or similar units expected to be obtained
from the asset by the entity.
• Residual value of an intangible asset is the estimated
amount that an entity would currently obtain from disposal
of the asset, after deducting the estimated costs of disposal,
if the asset was already at the age and the condition
expected at the end of its useful life.
10
