CERTYNEX IFRS ACADEMY

Nérédis uses a patent on a moulding process to manufacture its finished products. The annual amortisation of the patent amounts to 30,000. At the reporting date, some of the products manufactured during the year are still in inventory. How is the amortisation of the patent accounted for?

It is always recognised immediately as an expense, since the amortisation of an intangible asset can never be included in the cost of another asset.

It is included in the cost of the products manufactured under IAS 2 and reaches profit or loss when those products are sold.

It is suspended as long as the products manufactured using the patent have not been sold.

It is recognised in other comprehensive income, because it does not reflect consumption during the period.