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Question · Indefinite useful life: no amortisation, annual testing

A food group holds an acquired brand, recognised for several years with an indefinite useful life. A new health regulation will ban, in four years, the sale of the products marketed under this brand, and no repositioning is planned. The head of consolidation believes it is enough to continue the annual impairment test. Write a judgement memo on the treatment of the brand at the year-end.

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Judgment question: compare your answer with the criteria and the model explanation.

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