Capitalization of Brands Without Amortization

question 48

Multiple Choice

Capitalization of brands without amortization

• A) is acceptable in Canada and the United States
• B) is acceptable in France if there is no limit to its useful life
• C) is only permissible when the brand is internally generated under the IASB
• D) The IASB has no standard relating to brands.

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Definitions:

Multiple Market Segments

The practice of targeting several distinct groups of potential customers, each with specific needs and characteristics, within a broader market.

Single Product

A business strategy focused on the development, production, and sale of one particular product, rather than diversifying into multiple lines.

Market Segments

The relatively homogeneous groups of prospective buyers who have common needs and will respond similarly to a marketing action.

Market Needs

The specific requirements or demands of a target market that businesses aim to satisfy with their products or services.