CERTYNEX IFRS ACADEMY

A biotechnology company is drafting its amortisation policy for intangible assets with a finite useful life. Which of the following statements comply with IAS 38?

Amortisation begins only when the first revenue generated through the asset is collected.

The cost of the asset, less its residual value, is spread methodically as an expense over the whole period during which the entity expects to use it.

Once chosen, the straight-line method applies to all classes of assets, even if their benefits are consumed in different patterns.

The units of production method is an acceptable method when it reflects the pattern of consumption of the benefits.

Amortisation ceases at the date the asset is classified as held for sale under IFRS 5, or at its derecognition if earlier.