Under ASPE, which of the following statements best describes the accounting for intangible assets after acquisition?
A) They may be accounted for under the cost model or the revaluation model.
B) They should be accounted for under the cost model.
C) They should be accounted for under the revaluation model.
D) They must be amortized over a very short period, usually less than five years.

Question

Quizplus · Accepted Answer

Under ASPE, intangible assets should be accounted for under the cost model. This means that they are initially recorded at cost and then amortized over their useful lives. There is no option to use the revaluation model for intangible assets under ASPE. Additionally, the useful life of an intangible asset may vary depending on the type of asset and the expected future benefits to be derived from it, but it is generally longer than five years.

Under ASPE, Which of the Following Statements Best Describes the Accounting