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

Name: If an acquired franchise or license 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

If a franchise or license is for an indefinite time period, it is considered to have an indefinite useful life and should not be amortized. Instead, it should be tested for impairment annually.

If an Acquired Franchise or License Is for an Indefinite