AASB 138 Intangibles, Requires That an Intangible Asset with an Indefinite

question 21

Multiple Choice

AASB 138 Intangibles, requires that an intangible asset with an indefinite life:

• A) be amortised across its useful life.
• B) be amortised across a period of no greater than 10 years.
• C) not be amortised in periods when it has been properly maintained.
• D) not be subject to amortisation charges.

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Definitions:

Rate of Return

It measures the gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.

NPVGO

Net Present Value of Growth Opportunities; an assessment method to evaluate the value of investing in new projects or equipment considering the present value of expected growth opportunities.

Investor's Return

The profit or loss made on an investment, expressed as a percentage of the initial investment amount.

Current Dividends

Refers to the dividends that are declared and paid by a company for the current fiscal period.