CERTYNEX IFRS ACADEMY

Which factors does an entity consider when estimating the useful life of an item of property, plant and equipment? (Select all that apply.)

The depreciation period allowed by the tax authorities.

Technical or commercial obsolescence.

The expected usage of the asset, assessed by reference to its expected capacity or output.

Expected physical wear and tear, given the number of shifts and the maintenance programme.

Legal or similar limits on the use of the asset, such as the expiry of a lease.

The asset's maximum physical life, even if the entity plans to dispose of it much earlier.