Under AASB 138 Intangibles, an intangible asset with an finite 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 systematically over its useful life.

Question

Quizplus · Accepted Answer

Intangible assets with a finite useful life are amortised systematically over their useful life. Therefore, option D is the correct choice. Option A is incorrect because intangible assets with a finite useful life can be recognised as assets if they meet the definition of an asset under AASB 138. Option B is also incorrect as intangible assets with a finite useful life are subject to annual amortisation charges. Option C is incorrect as there is no set maximum period for amortisation of intangible assets with a finite useful life, although a maximum period of 20 years is commonly used as a guide.

Under AASB 138 Intangibles, an Intangible Asset with an Finite