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CalculationIntermediateVariant — group VG.IAS36.000506Published

Question · Depreciation and deferred tax after impairment

Quintessa acquired for 120,000 a licence to use a cosmetics brand. After an impairment loss, the licence is carried at 63,000; it has 7 years of use left and its residual value is 0. Compute the annual straight-line amortisation from the following period.

Acquisition cost of the licence
120,000
Carrying amount after impairment
63,000
Residual value
0
Remaining useful life
7
Your answer

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