Factors that should be considered in determining the useful life of an intangible asset include
A) Legal, regulatory, or contractual provisions.
B) The residual value of the asset.
C) The entity's expected use of the intangible asset.
D) The effects of obsolescence, competition, and technological change.
E) All of these choices are used in determining the useful life of an intangible asset.

Question

Quizplus · Accepted Answer

All of these factors should be considered in determining the useful life of an intangible asset. Legal, regulatory, or contractual provisions may limit the period of time that an entity can use the intangible asset. The entity's expected use of the asset is an important consideration as it reflects the intended purpose of the asset and how long it will be needed for that purpose. The effects of obsolescence, competition, and technological change are important to consider, as they can affect the value and usefulness of the intangible asset. The residual value of the asset is also a consideration, as it indicates the potential value of the asset after its useful life has ended.

Factors That Should Be Considered in Determining the Useful Life