CERTYNEX IFRS ACADEMY

An entity concludes that an acquired brand has an indefinite useful life. What treatment then applies to the brand?

It is amortised over a default maximum period set by the standard.

It is not amortised and is tested for impairment annually and whenever there is an indication of impairment.

It is neither amortised nor tested as long as no indication of impairment appears.

It is amortised over the brand's legal protection period, ignoring any possible renewals.