CERTYNEX IFRS ACADEMY

The management accountant of a logistics company must select the amortisation method for separately acquired warehouse management software. Which criterion should guide that choice?

The method used by the tax authorities to determine the company's taxable profit.

The method that best smooths profit from one period to the next, to make financial communication easier.

The expected pattern of consumption of the software's future economic benefits.

The method used by the software vendor in its own accounts for comparable assets.