Under IAS 38 Intangibles, an Intangible Asset with an Indefinite

question 17

Multiple Choice

Under IAS 38 Intangibles, an intangible asset with an indefinite useful life is:

• A) not able to be recognised by an entity as an asset;
• B) not subject to annual amortisation charges;
• C) amortised using the straight-line method over a period of no more than 20 years;
• D) amortised using the reducing balance method over a period not exceeding 5 years.

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Definitions:

Vehicle Identification Number

A unique code, including a serial number, used by the automotive industry to identify individual motor vehicles.

Tenth Digit

In the context of vehicle identification numbers (VIN), the tenth digit represents the model year of the vehicle.

Critical Parts

Essential components of a system or machinery that require regular maintenance and monitoring for safety.

Air Ratchet

A pneumatic tool used for loosening or tightening bolts or nuts with minimum effort, utilizing compressed air.