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Question · Disclosure of indefinite-life assets

The finance director of the Lamberge group, which holds two acquired brands with indefinite useful lives (a cosmetics brand with a carrying amount of 3,100,000 and a tools brand with a carrying amount of 1,700,000), considers detailed disclosures on these brands unnecessary since they generate no amortisation charge. Write a reasoned memo replying to him and specifying the information to be disclosed.

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

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