IAS 38Chapter 10Lesson 1
Amortising an intangible asset with a finite useful life
Step 1 of 9Learning objectives
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When amortisation starts and stops, how to choose a method that reflects the pattern in which the benefits are consumed (straight-line, diminishing balance, units of production), where to recognise the charge, and why revenue-based amortisation is presumed inappropriate except in two limited cases.
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Learning objectives
- Date the start and the end of amortisation of an intangible asset with a finite useful life.
- Choose an amortisation method consistent with the pattern of consumption of the benefits, and straight-line by default.
- Calculate the charge on a straight-line and on a units-of-production basis, including an incomplete first year.
- Recognise the charge in profit or loss or in the cost of another asset, depending on how the asset is used.
- Assess whether the presumption against revenue-based amortisation can be rebutted.