CERTYNEX IFRS ACADEMY

Mirabeau Thermal is drafting the justification for the indefinite useful life of an acquired mineral water brand. Which item is relevant to describe as a significant factor in the note?

Management's wish to avoid reducing profit with an amortisation charge.

The corporate income tax rate applicable to the entity.

The stability of the industry and the level of brand support expenditure required to obtain the expected benefits.

The fact that the brand was acquired from a third party rather than created internally.