Sylvarène amortises a broadcasting licence that a third party has contractually committed to buy back from it at the end of its useful life. At 1 January 20X4, the carrying amount of the licence is 130,000 and its remaining useful life is 3 years. On that date, the buy-back commitment is renegotiated and the revised residual value is 140,000. No other event affects the licence in 20X4. Calculate the amortisation charge for 20X4 and the carrying amount of the licence at 31 December 20X4.
- Carrying amount at 1 January 20X4
- 130,000
- Remaining useful life (years)
- 3
- Revised residual value
- 140,000