Opérateur Telvane acquires a licence to use radio frequencies for 15 years. At expiry, the frequencies will be reallocated by auction, at a market price the entity estimates to be comparable to the initial price. The strategic plan provides for abandoning the technology using these frequencies after 12 years. The chief executive wants to amortise the licence over 30 years, assuming it will be renewed. Write a judgement memo on the useful life of the licence.
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