If an acquired franchise or licence is for an indefinite time period, then the cost of the asset should not be amortized.

Name: If an acquired franchise or licence is for an indefinite time period, then the cost of the asset should not be amortized.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When a franchise or license is acquired for an indefinite time period, it is considered to have an indefinite useful life. According to accounting standards, assets with indefinite useful lives are not amortized but are tested annually for impairment.

If an Acquired Franchise or Licence Is for an Indefinite