Intangible Assets Without a Limited Useful Life Cannot Be Recorded

question 30

True/False

Intangible assets without a limited useful life cannot be recorded under AASB 138 as they cannot be amortised.

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Definitions:

Invested Assets

Assets that have been contributed or used by investors in the hope of generating future returns, often through interest, dividends, or appreciation in value.

Investment Center Performance

The evaluation of a unit within a company by measuring its profitability and the return on assets it controls.

Controlling Investment

A significant ownership stake in a company that grants the investor the power to influence or direct the company's decisions.

Residual Income

The income that an individual or company retains after all expenses and costs, including capital costs, have been deducted.