The Requirement of AASB 138 in Relation to the Amortisation

question 12

Multiple Choice

The requirement of AASB 138 in relation to the amortisation of development cost is that:

• A) It is to be amortised straight-line over a period not greater than 20 years.
• B) It is to be amortised from the time of deferral so as to match the cost to the related benefits.
• C) It is to be amortised using an accelerated depreciation rate over a period not exceeding 10 years.
• D) It is to be amortised from the time the asset is available for use and shall reflect the consumption of the economic benefits by the entity.
• E) None of the given answers.

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Definitions:

Costs Vary

An expression indicating that expenses can change based on factors such as production volume, time, and market conditions.

Level of Service

A measure of the quality of service provided, often used in the context of public transportation or customer service, indicating efficiency, responsiveness, and satisfaction.

Utilization Rate

This measures the efficiency with which capacity is used, often expressed as a percentage of total available capacity.

Exponential Distribution

A statistical distribution used to model time between events in a process that occurs continuously and independently at a constant average rate.