CAF-1 · Chapter 6 · Question 10 of 15
If an entity reassesses an intangible asset's useful life from 'indefinite' to 'finite', how is this change treated?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) As a change in an accounting estimate applied prospectively.
Explanation
The change in the useful life assessment from indefinite to finite is accounted for as a change in an accounting estimate under IAS 8, which is applied prospectively.
More IAS 38 Intangible Assets MCQs
- Q12Which of the following costs should be included in the initial cost of a separately acquired intangible asset?
- Q13Delta Corp acquired an intangible asset in a business combination. How should the cost of this asset be initially measured?
- Q14When does the amortisation of an intangible asset with a finite useful life commence?
- Q15Which of the following disclosures is NOT mandatory for intangible assets under IAS 38?
- Q1Which of the following best describes the defining characteristics of an intangible asset under IAS 38?