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.

Question

Quizplus · Accepted Answer

According to AASB 138, if an intangible asset has an indefinite useful life, it is not subject to annual amortisation charges. Therefore, option B is the correct answer. Option A is incorrect because such assets can be recognised as an asset. Option C and D are also incorrect because they suggest that some form of amortisation should be applied to the asset, which is not the case for intangible assets with indefinite useful life.

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