CERTYNEX IFRS ACADEMY

The management of Celmont considers that its beverage brand, acquired three years ago, has an indefinite useful life. Which statement about this assessment is correct?

Using an indefinite useful life amounts to considering that the brand will provide benefits forever, with no time limit at all.

The assessment may rely on planned future investment intended to raise the brand's reputation above its current level.

Only the maintenance expenditure needed to keep the brand at the standard of performance assessed, which Celmont is able and intends to incur, is taken into account.

Future maintenance expenditure is irrelevant to the assessment: only the absence of a legal expiry date for the brand matters.