Under AASB 138 Intangible Assets,an Intangible Asset with an Indefinite

question 5

Multiple Choice

Under AASB 138 Intangible Assets,an intangible asset with an indefinite useful life is:

• A)not able to be recognised 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:

Probate Will

The legal process by which a deceased person's will is validated by a court, and the estate is distributed according to the will's terms.

Sole Beneficiary

An individual or entity designated to receive the sole benefits from a will, trust, or insurance policy.

Undue Influence

The use of excessive pressure by the dominant member of a confidential relationship to convince the weaker party to enter a contract that greatly benefits the dominant party.

Durable Power of Attorney

A legal document that grants a trusted person the authority to act on behalf of another person in legal or financial matters, continuing or taking effect in the event of incapacity.