Useful life and amortisation

• Asset amortised (nature, rights, renewal terms)

  TextRequired

• Date the asset is available for use

  DateRequired

  20X1-04-01

• Term of the contractual or legal rights (supported renewals included)

  Number

• Cost (or other base amount) to amortise

  NumberRequired

  200,000

• Residual value (zero, unless a third party has committed to buy the asset at the end of its useful life, or an active market allows it to be determined and is likely to still exist at that date)

  NumberRequired

  0

  Residual value presumed to be zero unless (a) a third party has committed to buy the asset at the end of its useful life, or (b) there is an active market as defined in IFRS 13 (Appendix A) and both of these conditions are met: the residual value can be determined by reference to that market, and that market is likely to still exist at the end of the useful life (para. 100).

• Useful life retained

  NumberRequired

  5 years

• Months of amortisation in the period (from the available-for-use date)

  Number

  9 months

• Total expected units (right expressed in units)

  Number

• Units consumed in the period

  Number

• Carrying amount at the date of the change in estimate

  Number

• Revised residual value

  Number

• Revised remaining useful life

  Number

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 38 §88IAS 38 §90IAS 38 §94

• Factors considered

  ChecklistRequired

  • Expected usage and life cycles of similar products
  • Technical, technological or commercial obsolescence
  • Stability of the industry and changes in demand
  • Maintenance expenditure required and ability to incur it
  • Period of control and legal limits
  • Dependence on the useful life of other assets

• Contractual or legal rights

  Checklist

  • Life retained limited to the term of the rights (or shorter)
  • Renewal included only if supported and without significant cost

IAS 38 §94IAS 38 §97IAS 38 §98IAS 38 §100IAS 38 §104

• Amortisable amount

  Calculation

  200,000

  Cost (or other base amount) to amortise ; Residual value (zero, unless a third party has committed to buy the asset at the end of its useful life, or an active market allows it to be determined and is likely to still exist at that date) ; Useful life retained

• Annual straight-line amortisation

  Calculation

  40,000

  Cost (or other base amount) to amortise ; Residual value (zero, unless a third party has committed to buy the asset at the end of its useful life, or an active market allows it to be determined and is likely to still exist at that date) ; Useful life retained

• Straight-line charge for the period (pro rata from the available-for-use date)

  Calculation

  30,000

  Annual straight-line amortisation ; Months of amortisation in the period (from the available-for-use date)

• Charge for the period based on units consumed

  Calculation

  Amortisable amount ; Total expected units (right expressed in units) ; Units consumed in the period

• Revised annual amortisation (change in estimate, prospective treatment)

  Calculation

  Carrying amount at the date of the change in estimate ; Revised residual value ; Revised remaining useful life

  Reviewed at least at each year-end: a change in life, method or residual value is a change in estimate (paras. 102 and 104), recognised prospectively in the period of the change and later periods, without restatement (IAS 8, para. 36).

• Straight-line amortisation for the period

  Entry

  Account	Debit	Credit
  Amortisation expense	30,000
  Accumulated amortisation		30,000

• Units-of-production amortisation

  Entry

  Debit Amortisation expense ← Charge for the period based on units consumed ; Credit Accumulated amortisation ← Charge for the period based on units consumed

• Revised amortisation (full period)

  Entry

  Debit Amortisation expense ← Revised annual amortisation (change in estimate, prospective treatment) ; Credit Accumulated amortisation ← Revised annual amortisation (change in estimate, prospective treatment)

IAS 38 §88IAS 38 §97IAS 38 §98IAS 38 §100

• Finite or indefinite useful life

  JudgmentRequired

  Finite: amortised over the life retained

  Finite: amortised over the life retained / Indefinite: no amortisation, annual test (impairment workpaper)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Method reflecting the pattern of consumption of the benefits

  JudgmentRequired

  Straight-line (pattern regular or not reliably determinable)

  Straight-line (pattern regular or not reliably determinable) / Method based on the expected pattern of consumption of benefits (for example units of production, right expressed in units)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The straight-line entry is balancedPass
• The units entry is balancedNot evaluated
• The revised entry is balancedNot evaluated

Assets

-30,000

Liabilities

0

Profit or loss

-30,000

OCI

0

Equity

-30,000

• Asset amortised (nature, rights, renewal terms)

  TextRequired

• Date the asset is available for use

  DateRequired

  20X1-01-01

• Term of the contractual or legal rights (supported renewals included)

  Number

  5 years

• Cost (or other base amount) to amortise

  NumberRequired

  240,000

• Residual value (zero, unless a third party has committed to buy the asset at the end of its useful life, or an active market allows it to be determined and is likely to still exist at that date)

  NumberRequired

  0

  Residual value presumed to be zero unless (a) a third party has committed to buy the asset at the end of its useful life, or (b) there is an active market as defined in IFRS 13 (Appendix A) and both of these conditions are met: the residual value can be determined by reference to that market, and that market is likely to still exist at the end of the useful life (para. 100).

• Useful life retained

  NumberRequired

  5 years

• Months of amortisation in the period (from the available-for-use date)

  Number

  12 months

• Total expected units (right expressed in units)

  Number

• Units consumed in the period

  Number

• Carrying amount at the date of the change in estimate

  Number

• Revised residual value

  Number

• Revised remaining useful life

  Number

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 38 §88IAS 38 §90IAS 38 §94

• Factors considered

  ChecklistRequired

  • Expected usage and life cycles of similar products
  • Technical, technological or commercial obsolescence
  • Stability of the industry and changes in demand
  • Maintenance expenditure required and ability to incur it
  • Period of control and legal limits
  • Dependence on the useful life of other assets

• Contractual or legal rights

  Checklist

  • Life retained limited to the term of the rights (or shorter)
  • Renewal included only if supported and without significant cost

IAS 38 §94IAS 38 §97IAS 38 §98IAS 38 §100IAS 38 §104

• Amortisable amount

  Calculation

  240,000

  Cost (or other base amount) to amortise ; Residual value (zero, unless a third party has committed to buy the asset at the end of its useful life, or an active market allows it to be determined and is likely to still exist at that date) ; Useful life retained

• Annual straight-line amortisation

  Calculation

  48,000

  Cost (or other base amount) to amortise ; Residual value (zero, unless a third party has committed to buy the asset at the end of its useful life, or an active market allows it to be determined and is likely to still exist at that date) ; Useful life retained

• Straight-line charge for the period (pro rata from the available-for-use date)

  Calculation

  48,000

  Annual straight-line amortisation ; Months of amortisation in the period (from the available-for-use date)

• Charge for the period based on units consumed

  Calculation

  Amortisable amount ; Total expected units (right expressed in units) ; Units consumed in the period

• Revised annual amortisation (change in estimate, prospective treatment)

  Calculation

  Carrying amount at the date of the change in estimate ; Revised residual value ; Revised remaining useful life

  Reviewed at least at each year-end: a change in life, method or residual value is a change in estimate (paras. 102 and 104), recognised prospectively in the period of the change and later periods, without restatement (IAS 8, para. 36).

• Straight-line amortisation for the period

  Entry

  Account	Debit	Credit
  Amortisation expense	48,000
  Accumulated amortisation		48,000

• Units-of-production amortisation

  Entry

  Debit Amortisation expense ← Charge for the period based on units consumed ; Credit Accumulated amortisation ← Charge for the period based on units consumed

• Revised amortisation (full period)

  Entry

  Debit Amortisation expense ← Revised annual amortisation (change in estimate, prospective treatment) ; Credit Accumulated amortisation ← Revised annual amortisation (change in estimate, prospective treatment)

IAS 38 §88IAS 38 §97IAS 38 §98IAS 38 §100

• Finite or indefinite useful life

  JudgmentRequired

  Finite: amortised over the life retained

  Finite: amortised over the life retained / Indefinite: no amortisation, annual test (impairment workpaper)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Method reflecting the pattern of consumption of the benefits

  JudgmentRequired

  Straight-line (pattern regular or not reliably determinable)

  Straight-line (pattern regular or not reliably determinable) / Method based on the expected pattern of consumption of benefits (for example units of production, right expressed in units)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The straight-line entry is balancedPass
• The units entry is balancedNot evaluated
• The revised entry is balancedNot evaluated

Assets

-48,000

Liabilities

0

Profit or loss

-48,000

OCI

0

Equity

-48,000

• Asset amortised (nature, rights, renewal terms)

  TextRequired

• Date the asset is available for use

  DateRequired

• Term of the contractual or legal rights (supported renewals included)

  Number

• Cost (or other base amount) to amortise

  NumberRequired

  270,000

• Residual value (zero, unless a third party has committed to buy the asset at the end of its useful life, or an active market allows it to be determined and is likely to still exist at that date)

  NumberRequired

  0

  Residual value presumed to be zero unless (a) a third party has committed to buy the asset at the end of its useful life, or (b) there is an active market as defined in IFRS 13 (Appendix A) and both of these conditions are met: the residual value can be determined by reference to that market, and that market is likely to still exist at the end of the useful life (para. 100).

• Useful life retained

  NumberRequired

  4 years

• Months of amortisation in the period (from the available-for-use date)

  Number

  9 months

• Total expected units (right expressed in units)

  Number

• Units consumed in the period

  Number

• Carrying amount at the date of the change in estimate

  Number

• Revised residual value

  Number

• Revised remaining useful life

  Number

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 38 §88IAS 38 §90IAS 38 §94

• Factors considered

  ChecklistRequired

  • Expected usage and life cycles of similar products
  • Technical, technological or commercial obsolescence
  • Stability of the industry and changes in demand
  • Maintenance expenditure required and ability to incur it
  • Period of control and legal limits
  • Dependence on the useful life of other assets

• Contractual or legal rights

  Checklist

  • Life retained limited to the term of the rights (or shorter)
  • Renewal included only if supported and without significant cost

IAS 38 §94IAS 38 §97IAS 38 §98IAS 38 §100IAS 38 §104

• Amortisable amount

  Calculation

  270,000

  Cost (or other base amount) to amortise ; Residual value (zero, unless a third party has committed to buy the asset at the end of its useful life, or an active market allows it to be determined and is likely to still exist at that date) ; Useful life retained

• Annual straight-line amortisation

  Calculation

  67,500

  Cost (or other base amount) to amortise ; Residual value (zero, unless a third party has committed to buy the asset at the end of its useful life, or an active market allows it to be determined and is likely to still exist at that date) ; Useful life retained

• Straight-line charge for the period (pro rata from the available-for-use date)

  Calculation

  50,625

  Annual straight-line amortisation ; Months of amortisation in the period (from the available-for-use date)

• Charge for the period based on units consumed

  Calculation

  Amortisable amount ; Total expected units (right expressed in units) ; Units consumed in the period

• Revised annual amortisation (change in estimate, prospective treatment)

  Calculation

  Carrying amount at the date of the change in estimate ; Revised residual value ; Revised remaining useful life

  Reviewed at least at each year-end: a change in life, method or residual value is a change in estimate (paras. 102 and 104), recognised prospectively in the period of the change and later periods, without restatement (IAS 8, para. 36).

• Straight-line amortisation for the period

  Entry

  Account	Debit	Credit
  Amortisation expense	50,625
  Accumulated amortisation		50,625

• Units-of-production amortisation

  Entry

  Debit Amortisation expense ← Charge for the period based on units consumed ; Credit Accumulated amortisation ← Charge for the period based on units consumed

• Revised amortisation (full period)

  Entry

  Debit Amortisation expense ← Revised annual amortisation (change in estimate, prospective treatment) ; Credit Accumulated amortisation ← Revised annual amortisation (change in estimate, prospective treatment)

IAS 38 §88IAS 38 §97IAS 38 §98IAS 38 §100

• Finite or indefinite useful life

  JudgmentRequired

  Finite: amortised over the life retained

  Finite: amortised over the life retained / Indefinite: no amortisation, annual test (impairment workpaper)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Method reflecting the pattern of consumption of the benefits

  JudgmentRequired

  Straight-line (pattern regular or not reliably determinable)

  Straight-line (pattern regular or not reliably determinable) / Method based on the expected pattern of consumption of benefits (for example units of production, right expressed in units)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The straight-line entry is balancedPass
• The units entry is balancedNot evaluated
• The revised entry is balancedNot evaluated

Assets

-50,625

Liabilities

0

Profit or loss

-50,625

OCI

0

Equity

-50,625

• Asset amortised (nature, rights, renewal terms)

  TextRequired

• Date the asset is available for use

  DateRequired

• Term of the contractual or legal rights (supported renewals included)

  Number

• Cost (or other base amount) to amortise

  NumberRequired

  240,000

• Residual value (zero, unless a third party has committed to buy the asset at the end of its useful life, or an active market allows it to be determined and is likely to still exist at that date)

  NumberRequired

  0

  Residual value presumed to be zero unless (a) a third party has committed to buy the asset at the end of its useful life, or (b) there is an active market as defined in IFRS 13 (Appendix A) and both of these conditions are met: the residual value can be determined by reference to that market, and that market is likely to still exist at the end of the useful life (para. 100).

• Useful life retained

  NumberRequired

  5 years

• Months of amortisation in the period (from the available-for-use date)

  Number

  1 months

• Total expected units (right expressed in units)

  Number

• Units consumed in the period

  Number

• Carrying amount at the date of the change in estimate

  Number

• Revised residual value

  Number

• Revised remaining useful life

  Number

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 38 §88IAS 38 §90IAS 38 §94

• Factors considered

  ChecklistRequired

  • Expected usage and life cycles of similar products
  • Technical, technological or commercial obsolescence
  • Stability of the industry and changes in demand
  • Maintenance expenditure required and ability to incur it
  • Period of control and legal limits
  • Dependence on the useful life of other assets

• Contractual or legal rights

  Checklist

  • Life retained limited to the term of the rights (or shorter)
  • Renewal included only if supported and without significant cost

IAS 38 §94IAS 38 §97IAS 38 §98IAS 38 §100IAS 38 §104

• Amortisable amount

  Calculation

  240,000

  Cost (or other base amount) to amortise ; Residual value (zero, unless a third party has committed to buy the asset at the end of its useful life, or an active market allows it to be determined and is likely to still exist at that date) ; Useful life retained

• Annual straight-line amortisation

  Calculation

  48,000

  Cost (or other base amount) to amortise ; Residual value (zero, unless a third party has committed to buy the asset at the end of its useful life, or an active market allows it to be determined and is likely to still exist at that date) ; Useful life retained

• Straight-line charge for the period (pro rata from the available-for-use date)

  Calculation

  4,000

  Annual straight-line amortisation ; Months of amortisation in the period (from the available-for-use date)

• Charge for the period based on units consumed

  Calculation

  Amortisable amount ; Total expected units (right expressed in units) ; Units consumed in the period

• Revised annual amortisation (change in estimate, prospective treatment)

  Calculation

  Carrying amount at the date of the change in estimate ; Revised residual value ; Revised remaining useful life

  Reviewed at least at each year-end: a change in life, method or residual value is a change in estimate (paras. 102 and 104), recognised prospectively in the period of the change and later periods, without restatement (IAS 8, para. 36).

• Straight-line amortisation for the period

  Entry

  Account	Debit	Credit
  Amortisation expense	4,000
  Accumulated amortisation		4,000

• Units-of-production amortisation

  Entry

  Debit Amortisation expense ← Charge for the period based on units consumed ; Credit Accumulated amortisation ← Charge for the period based on units consumed

• Revised amortisation (full period)

  Entry

  Debit Amortisation expense ← Revised annual amortisation (change in estimate, prospective treatment) ; Credit Accumulated amortisation ← Revised annual amortisation (change in estimate, prospective treatment)

IAS 38 §88IAS 38 §97IAS 38 §98IAS 38 §100

• Finite or indefinite useful life

  JudgmentRequired

  Finite: amortised over the life retained

  Finite: amortised over the life retained / Indefinite: no amortisation, annual test (impairment workpaper)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Method reflecting the pattern of consumption of the benefits

  JudgmentRequired

  Straight-line (pattern regular or not reliably determinable)

  Straight-line (pattern regular or not reliably determinable) / Method based on the expected pattern of consumption of benefits (for example units of production, right expressed in units)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The straight-line entry is balancedPass
• The units entry is balancedNot evaluated
• The revised entry is balancedNot evaluated

Assets

-4,000

Liabilities

0

Profit or loss

-4,000

OCI

0

Equity

-4,000

• Asset amortised (nature, rights, renewal terms)

  TextRequired

• Date the asset is available for use

  DateRequired

• Term of the contractual or legal rights (supported renewals included)

  Number

• Cost (or other base amount) to amortise

  NumberRequired

• Residual value (zero, unless a third party has committed to buy the asset at the end of its useful life, or an active market allows it to be determined and is likely to still exist at that date)

  NumberRequired

  Residual value presumed to be zero unless (a) a third party has committed to buy the asset at the end of its useful life, or (b) there is an active market as defined in IFRS 13 (Appendix A) and both of these conditions are met: the residual value can be determined by reference to that market, and that market is likely to still exist at the end of the useful life (para. 100).

• Useful life retained

  NumberRequired

• Months of amortisation in the period (from the available-for-use date)

  Number

• Total expected units (right expressed in units)

  Number

• Units consumed in the period

  Number

• Carrying amount at the date of the change in estimate

  Number

  120,000

• Revised residual value

  Number

  0

• Revised remaining useful life

  Number

  3 years

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 38 §88IAS 38 §90IAS 38 §94

• Factors considered

  ChecklistRequired

  • Expected usage and life cycles of similar products
  • Technical, technological or commercial obsolescence
  • Stability of the industry and changes in demand
  • Maintenance expenditure required and ability to incur it
  • Period of control and legal limits
  • Dependence on the useful life of other assets

• Contractual or legal rights

  Checklist

  • Life retained limited to the term of the rights (or shorter)
  • Renewal included only if supported and without significant cost

IAS 38 §94IAS 38 §97IAS 38 §98IAS 38 §100IAS 38 §104

• Amortisable amount

  Calculation

  Cost (or other base amount) to amortise ; Residual value (zero, unless a third party has committed to buy the asset at the end of its useful life, or an active market allows it to be determined and is likely to still exist at that date) ; Useful life retained

• Annual straight-line amortisation

  Calculation

  Cost (or other base amount) to amortise ; Residual value (zero, unless a third party has committed to buy the asset at the end of its useful life, or an active market allows it to be determined and is likely to still exist at that date) ; Useful life retained

• Straight-line charge for the period (pro rata from the available-for-use date)

  Calculation

  Annual straight-line amortisation ; Months of amortisation in the period (from the available-for-use date)

• Charge for the period based on units consumed

  Calculation

  Amortisable amount ; Total expected units (right expressed in units) ; Units consumed in the period

• Revised annual amortisation (change in estimate, prospective treatment)

  Calculation

  40,000

  Carrying amount at the date of the change in estimate ; Revised residual value ; Revised remaining useful life

  Reviewed at least at each year-end: a change in life, method or residual value is a change in estimate (paras. 102 and 104), recognised prospectively in the period of the change and later periods, without restatement (IAS 8, para. 36).

• Straight-line amortisation for the period

  Entry

  Debit Amortisation expense ← Straight-line charge for the period (pro rata from the available-for-use date) ; Credit Accumulated amortisation ← Straight-line charge for the period (pro rata from the available-for-use date)

• Units-of-production amortisation

  Entry

  Debit Amortisation expense ← Charge for the period based on units consumed ; Credit Accumulated amortisation ← Charge for the period based on units consumed

• Revised amortisation (full period)

  Entry

  Account	Debit	Credit
  Amortisation expense	40,000
  Accumulated amortisation		40,000

IAS 38 §88IAS 38 §97IAS 38 §98IAS 38 §100

• Finite or indefinite useful life

  JudgmentRequired

  Finite: amortised over the life retained

  Finite: amortised over the life retained / Indefinite: no amortisation, annual test (impairment workpaper)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Method reflecting the pattern of consumption of the benefits

  JudgmentRequired

  Straight-line (pattern regular or not reliably determinable)

  Straight-line (pattern regular or not reliably determinable) / Method based on the expected pattern of consumption of benefits (for example units of production, right expressed in units)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The straight-line entry is balancedNot evaluated
• The units entry is balancedNot evaluated
• The revised entry is balancedPass

Assets

-40,000

Liabilities

0

Profit or loss

-40,000

OCI

0

Equity

-40,000

• Asset amortised (nature, rights, renewal terms)

  TextRequired

• Date the asset is available for use

  DateRequired

• Term of the contractual or legal rights (supported renewals included)

  Number

• Cost (or other base amount) to amortise

  NumberRequired

  120,000

• Residual value (zero, unless a third party has committed to buy the asset at the end of its useful life, or an active market allows it to be determined and is likely to still exist at that date)

  NumberRequired

  0

  Residual value presumed to be zero unless (a) a third party has committed to buy the asset at the end of its useful life, or (b) there is an active market as defined in IFRS 13 (Appendix A) and both of these conditions are met: the residual value can be determined by reference to that market, and that market is likely to still exist at the end of the useful life (para. 100).

• Useful life retained

  NumberRequired

  6 years

• Months of amortisation in the period (from the available-for-use date)

  Number

  6 months

• Total expected units (right expressed in units)

  Number

• Units consumed in the period

  Number

• Carrying amount at the date of the change in estimate

  Number

• Revised residual value

  Number

• Revised remaining useful life

  Number

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 38 §88IAS 38 §90IAS 38 §94

• Factors considered

  ChecklistRequired

  • Expected usage and life cycles of similar products
  • Technical, technological or commercial obsolescence
  • Stability of the industry and changes in demand
  • Maintenance expenditure required and ability to incur it
  • Period of control and legal limits
  • Dependence on the useful life of other assets

• Contractual or legal rights

  Checklist

  • Life retained limited to the term of the rights (or shorter)
  • Renewal included only if supported and without significant cost

IAS 38 §94IAS 38 §97IAS 38 §98IAS 38 §100IAS 38 §104

• Amortisable amount

  Calculation

  120,000

  Cost (or other base amount) to amortise ; Residual value (zero, unless a third party has committed to buy the asset at the end of its useful life, or an active market allows it to be determined and is likely to still exist at that date) ; Useful life retained

• Annual straight-line amortisation

  Calculation

  20,000

  Cost (or other base amount) to amortise ; Residual value (zero, unless a third party has committed to buy the asset at the end of its useful life, or an active market allows it to be determined and is likely to still exist at that date) ; Useful life retained

• Straight-line charge for the period (pro rata from the available-for-use date)

  Calculation

  10,000

  Annual straight-line amortisation ; Months of amortisation in the period (from the available-for-use date)

• Charge for the period based on units consumed

  Calculation

  Amortisable amount ; Total expected units (right expressed in units) ; Units consumed in the period

• Revised annual amortisation (change in estimate, prospective treatment)

  Calculation

  Carrying amount at the date of the change in estimate ; Revised residual value ; Revised remaining useful life

  Reviewed at least at each year-end: a change in life, method or residual value is a change in estimate (paras. 102 and 104), recognised prospectively in the period of the change and later periods, without restatement (IAS 8, para. 36).

• Straight-line amortisation for the period

  Entry

  Account	Debit	Credit
  Amortisation expense	10,000
  Accumulated amortisation		10,000

• Units-of-production amortisation

  Entry

  Debit Amortisation expense ← Charge for the period based on units consumed ; Credit Accumulated amortisation ← Charge for the period based on units consumed

• Revised amortisation (full period)

  Entry

  Debit Amortisation expense ← Revised annual amortisation (change in estimate, prospective treatment) ; Credit Accumulated amortisation ← Revised annual amortisation (change in estimate, prospective treatment)

IAS 38 §88IAS 38 §97IAS 38 §98IAS 38 §100

• Finite or indefinite useful life

  JudgmentRequired

  Finite: amortised over the life retained

  Finite: amortised over the life retained / Indefinite: no amortisation, annual test (impairment workpaper)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Method reflecting the pattern of consumption of the benefits

  JudgmentRequired

  Straight-line (pattern regular or not reliably determinable)

  Straight-line (pattern regular or not reliably determinable) / Method based on the expected pattern of consumption of benefits (for example units of production, right expressed in units)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The straight-line entry is balancedPass
• The units entry is balancedNot evaluated
• The revised entry is balancedNot evaluated

Assets

-10,000

Liabilities

0

Profit or loss

-10,000

OCI

0

Equity

-10,000