Which of the following statements regarding AASB 138 is incorrect?
A)intangible assets with a finite useful life must be amortised over the asset's useful life
B)the useful life of an intangible asset may be influenced by both economic and legal factors
C)the residual values of intangible asset having a finite useful life are always assumed to be greater than zero
D)for an intangible asset that arises from contractual or other legal rights,its useful life cannot exceed the period of those rights

Question

Quizplus · Accepted Answer

AASB 138 states that the residual value of intangible assets with a finite useful life may or may not be zero, and it should be reviewed at the end of each reporting period to determine if there are any indicators of impairment. The statement in option C is therefore incorrect.

Which of the Following Statements Regarding AASB 138 Is Incorrect