IAS 38 States That an Intangible Asset Is Deemed to Have

question 38

Multiple Choice

IAS 38 states that an intangible asset is deemed to have an indefinite life when there is no foreseeable end to the expected cash flows the asset is likely to generate. What is the impact of an indefinite life on amortization of the intangible asset's cost under IAS 38?

• A) Management may choose any number of years over which to amortize the cost.
• B) No amortization is taken as long as the life is considered indefinite.
• C) The cost of the asset should be amortized over 20 years.
• D) The cost of the asset should be expensed in the period the intangible asset is acquired.

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Definitions:

Epidural Infusion

A method of delivering medication directly into the epidural space of the spine, often used for pain management during surgery or childbirth.

Fentanyl And Bupivacaine

A combination of drugs, with Fentanyl being a potent opioid painkiller and Bupivacaine being a local anesthetic, used for pain management.

Impaired Gas Exchange

A condition where there is a problem with the transfer of oxygen and carbon dioxide between the lungs and the blood, affecting respiratory efficiency.

Fentanyl Transdermal Patch

A patch applied to the skin that delivers the potent pain medication fentanyl through the skin into the bloodstream.