Ind AS 38 - Intangible Assets

Indian Accounting Standard (Ind AS) 38 - Intangible Assets

Ind AS 38 – Summary

  • Background and Scope
    • Prescribes accounting treatment for intangible assets not specifically covered by another standard.
    • Requires recognition only if specified criteria are met.
    • Specifies measurement of carrying amount and disclosure requirements.
    • Exclusions:
      • Intangible assets within the scope of other standards.
      • Financial assets (Ind AS 32).
      • Exploration and evaluation assets (Ind AS 106).
      • Expenditure on development and extraction of minerals, oil, natural gas, and similar resources.
      • Rights held by a lessee under licensing agreements (motion picture films, video recordings, plays, manuscripts, patents and copyrights) are excluded from Ind AS 116.

Intangible Assets

  • Definition: Identifiable non-monetary asset without physical substance.
  • Recognition Criteria:
    • Identifiability.
    • Control over the resource.
    • Existence of future economic benefits.
  • If an item doesn't meet the definition, expenditure is expensed when incurred, unless acquired in a business combination (part of goodwill).

Identifiability

  • Conditions:
    • Separable: Capable of being separated from the entity and sold, transferred, licensed, rented, or exchanged.
    • Arises from contractual or other legal rights.

Control

  • Power to obtain future economic benefits from the underlying resource.
  • Ability to restrict others' access to those benefits.
  • Legal rights enforceable in court provide a strong indication of control, but not a necessary condition.
  • Control can be demonstrated even without legal rights, such as through customer relationships or market share, but this is more difficult to prove.
  • Exchange transactions for similar non-contractual customer relationships can provide evidence of control and separability.

Future Economic Benefits

  • Revenue from sales or services.
  • Cost savings.
  • Other benefits from the asset's use.

Recognition and Measurement

  • Recognize if it meets the definition and recognition criteria.
  • Applies to initial acquisition, internal generation, and subsequent costs.
  • Recognition Criteria:
    • Probable future economic benefits will flow to the entity.
    • The cost can be measured reliably.
  • Initially measured at cost.
  • Probability of future economic benefits is assessed using reasonable and supportable assumptions representing management's best estimate.

Separate Acquisition

  • Cost includes:
    • Purchase price (including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates).
    • Directly attributable costs of preparing the asset for its intended use.
  • Probability recognition criterion is always considered satisfied.
  • Examples of directly attributable costs are provided, as well as examples of expenditures not part of the intangible asset's cost.

Acquisition as Part of a Business Combination

  • Cost is its fair value at the acquisition date.
  • Probability recognition criterion is always considered satisfied.
  • Reliable measurement criterion is always considered satisfied if separable or arising from contractual/legal rights.
  • In accordance with Ind AS 103, Business Combinations, an acquirer should recognize at the acquisition date, separately from goodwill, an intangible asset of the acquiree.
  • This includes in-process research and development projects.
  • If separable only with related items, recognize together with those items.

Acquisition by Way of a Government Grant

  • May be acquired free of charge or for nominal consideration.
  • In accordance with Ind AS 20, Accounting for Government Grants and Disclosure of Government Assistance, an entity may choose to recognize both the intangible asset and the grant initially at fair value.
  • If fair value is not used, recognize the asset at a nominal amount plus directly attributable costs.

Subsequent Expenditure on an Acquired In-Process Research and Development Project

  • Recognized as:
    • Expense when incurred if it is research expenditure.
    • Expense when incurred if it is development expenditure that does not satisfy the recognition criteria.
    • Added to the carrying amount if it is development expenditure that satisfies the recognition criteria.

Internally Generated Intangible Assets

  • Internally generated goodwill cannot be recognized as an asset.
  • Generation of the asset is classified into:
    • Research phase
    • Development phase
  • No intangible asset is recognized from research; expenditure is expensed when incurred.

Recognition Criteria for Development Phase

  • An intangible asset arising from development (or from the development phase of an internal project) should be recognized if, and only if, an entity can demonstrate all of the following:
    • Technical feasibility of completing the asset.
    • Intention to complete and use or sell the asset.
    • Ability to use or sell the asset.
    • How the asset will generate probable future economic benefits.
    • Availability of adequate technical, financial, and other resources.
    • Ability to measure reliably the expenditure attributable to the asset during its development.
  • Internally generated brands, mastheads, publishing titles, customer lists, and similar items cannot be recognized.
  • The cost of an internally generated intangible asset includes expenditure incurred from the date it first meets the recognition criteria and the condition relating to development phase.

Recognition of an Expense

  • Expenditure on an intangible item is expensed when incurred unless:
    • It forms part of the cost of an intangible asset that meets the recognition criteria.
    • It is acquired in a business combination and cannot be recognized as an intangible asset (part of goodwill).
  • Expenditure previously recognized as an expense cannot be reinstated as part of the cost of an intangible asset.

Measurement After Recognition

  • Choose either the cost model or the revaluation model as accounting policy.
  • If revaluation model is used, all assets in its class must use the same model, unless there is no active market.
  • A class of intangible assets is a grouping of similar nature and use.

Cost Model

  • Carried at cost less accumulated amortization and accumulated impairment losses.

Revaluation Model

  • Carried at a revalued amount (fair value at revaluation date) less subsequent accumulated amortization and impairment losses.
  • Fair value must be measured by reference to an active market.
  • Revaluations should be made regularly to ensure the carrying amount does not differ materially from fair value.
  • The revaluation model is applied after initial recognition at cost.
  • May be applied to an asset received by way of a Government grant and recognized at a nominal amount.

Treatment of Revaluation Gains and Losses

  • Increase recognized in other comprehensive income and accumulated in equity as revaluation surplus, unless it reverses a previous decrease recognized in profit or loss.
  • Decrease recognized in profit or loss, unless it reverses a previous increase recognized in other comprehensive income.

Amortization Method

  • The depreciable amount of an intangible asset with a finite useful life is allocated systematically over its useful life.
  • Amortization begins when the asset is available for use.
  • Amortization ceases when the asset is classified as held for sale or derecognized.
  • Methods: straight-line, diminishing balance, units of production.
  • The method is selected based on the expected pattern of consumption of economic benefits.
  • If the pattern cannot be reliably determined, the straight-line method should be used.
  • The method is applied consistently unless there is a change in the pattern of consumption.
  • The amortization charge is recognized in profit or loss unless included in the carrying amount of another asset.

Useful Life

  • (a) Period over which the asset is expected to be available for use; or
  • (b) Number of production or similar units expected to be obtained from the asset.
  • Assess whether the useful life is finite or indefinite.
  • Indefinite useful life: no foreseeable limit to the period over which the asset is expected to generate net cash inflows.
  • Accounting is based on useful life: finite is amortized; indefinite is not (but tested for impairment).
  • The standard specifies many factors to consider when determining useful life.
  • For assets arising from contractual/legal rights, the useful life should not exceed the period of those rights, but may be shorter.
  • Renewal periods included only if there is evidence of renewal without significant cost.

Review of Amortization Period and Method

  • Reviewed at least at each financial year-end.
  • Changes accounted for as changes in accounting estimates in accordance with Ind AS 8.

Intangible Assets with Indefinite Useful Life

  • Not amortized.

Review of Useful Life Assessment

  • Reviewed each period to determine if indefinite useful life assessment is still valid.
  • If not, change accounted for as a change in accounting estimate in accordance with Ind AS 8.

Residual Value

  • Assumed to be zero unless:
    • A third party is committed to purchasing the asset at the end of its useful life.
    • There is an active market for the asset and residual value can be determined.
  • A residual value other than zero implies expected disposal before the end of economic life.
  • Estimate based on the amount recoverable from disposal using prices prevailing at the date of the estimate for the sale of a similar asset at the end of its useful life.
  • Reviewed at least at each financial year-end; changes accounted for as changes in accounting estimates as per Ind AS 8.

Derecognition

  • An intangible asset should be derecognised:
    • On disposal; or
    • When no future economic benefits are expected from its use or disposal.
  • Gain or loss is the difference between net disposal proceeds and carrying amount, recognized in profit or loss when the asset is derecognized (unless Ind AS 116, Leases requires otherwise on a sale and leaseback).
  • Gains should not be classified as revenue.
  • Disposal can occur in various ways (sale, finance lease, donation).
  • The date of disposal is the date that the recipient obtains control of that asset.
  • Ind AS 116, Leases applies to disposal by a sale and leaseback.

Disclosure Requirements

  • For each class of intangible assets, disclose:
    • Whether useful lives are indefinite or finite; if finite, specify useful lives or amortization rates.
    • Amortization methods used.
    • Gross carrying amount and accumulated amortization (aggregated with accumulated impairment losses) at the beginning and end of the period.
    • The line item(s) of the statement of profit and loss in which any amortization of intangible assets is included.
    • A reconciliation of the carrying amount at the beginning and end of the period showing:
      • Additions (separately for internally developed, acquired separately or through business combinations); assets classified as held for sale or included in a disposal group classified as held for sale and other disposals;
      • Increases or decreases during the period from revaluations and impairment losses recognised or reversed in other comprehensive income;
      • Impairment losses recognised or reversed in profit or loss;
      • Any amortisation recognised during the period;
      • Net exchange differences arising on the translation into the presentation currency, and on the translation of a foreign operation into the presentation currency of the entity; and
      • Other changes in the carrying amount during the period.
  • Also disclose:
    • For intangible assets with indefinite useful life:
      • Carrying amount.
      • Reasons supporting indefinite useful life assessment, including the factor(s) that played a significant role.
    • A description, the carrying amount and remaining amortisation period of any individual intangible asset that is material to the entity’s financial statements.
    • For intangible assets acquired by way of a government grant and initially recognised at fair value:
      • The fair value initially recognised for these assets;
      • Their carrying amount; and
      • Whether subsequent measurement is under the cost model or the revaluation model.
    • Existence and carrying amounts of intangible assets whose title is restricted and
    • Carrying amounts of intangible assets pledged as security for liabilities.
    • Amount of contractual commitments for the acquisition of intangible assets.
  • If intangible assets are accounted for at revalued amounts, disclose:
    • By class of intangible assets:
      • The effective date of the revaluation;
      • The carrying amount of revalued intangible assets;
      • The carrying amount that would have been recognised had the revalued class of intangible assets been measured after recognition using the cost model
    • The amount of the revaluation surplus that relates to intangible assets at the beginning and end of the period, indicating the changes during the period and any restrictions on the distribution.
    • An entity shall disclose the aggregate amount of research and development expenditure recognised as an expense during the period.

Intangible Assets-Website Costs

  • Appendix A of Ind AS 38 provides guidance on whether a website is an internally generated intangible asset and the accounting treatment of expenditure on websites.
  • An entity's own website from development for internal or external access is an internally generated intangible asset subject to Ind AS 38.
  • Internal expenditure on development and operation should be accounted for according to Ind AS 38.
  • The nature of each activity (e.g., training employees, maintaining the website) and the website's stage of development or post-development should be evaluated.
  • A website recognized as an intangible asset should be measured after initial recognition by applying the requirements of Ind AS 38.
  • The best estimate of a website's useful life should be short.

Frequently Asked Questions (FAQ)

Question 1

  • Issue: Distinguishing between Ind AS 16 (PPE) and Ind AS 38 (Intangible Assets) for assets with both tangible and intangible elements.
  • Response: Apply judgment to assess which element is more significant. Consider whether the intangible part is integral to the tangible asset or separately separable.
    • Example: Computer software that is essential for a computer-controlled machine to operate is considered part of the related hardware and treated as PPE. Accounting software installed to be used for a specific purpose should be capitalized as intangible asset.

Question 2

  • Issue: How to account for expenditure resulting in an asset with physical substance – Tangible (PPE) or Intangible?
  • Response: If the physical element is secondary to its intangible component, i.e., the knowledge embodied in it, Ind AS 38 applies.
    • Example: Patented artistic works where the artistic value is predominant should be treated as intangible assets.

Question 3

  • Issue: Specific assumptions regarding the recognition criterion of intangible assets acquired in certain situations.
  • Response: Yes, the Standard explicitly outlines assumptions in relation to the fulfillment of the recognition criteria for externally acquired intangible assets.

Question 4

  • Issue: Is separability a necessary criterion for an asset to be classified as an Intangible asset?
  • Response: Separability is one of the criteria but not the necessary one. If the asset arises from a contractual or other legal rights, then the criteria of identifiability is met, and the asset can be identified as an intangible asset.
    • Example: Non-transferable license to operate radio station arises from legal rights and hence identifiable. An entity X acquires another entity Y and as a part of the purchase consideration, it pays certain amount towards ‘Non-compete Fee’ so as to restrict the entity Y from competing in the same line of business for the next 5 years.

Question 5

  • Issue: Can expenditure incurred on purchase/acquisition/development of Customer or Supplier relationships be recognized as an intangible asset?
  • Response: Recognition depends on whether these relationships are internally generated or externally acquired. Differentiates between customer lists, customer contracts, and customer relationships. Emphasizes satisfying identifiability, control, and future economic benefit criteria. Focuses on ability to protect and control customer relationships. Acquisition in a business combination can be recognized based on facts and circumstances.
  • Customer Lists: A customer list acquired in a business combination normally meets the separability criterion.
  • Order or production backlog
    These normally arise from contracts such as purchase or sales orders, therefore, meet the contractual-legal criterion if an order or production backlog is acquired in a business combination. This is so even if the purchase or sales order can be cancelled.
  • Customer related relationships through contracts: relationship meets the contractual-legal criterion for recognition of intangible asset if these relationships are acquired in a business combination.
  • Non-Contractual Customer relationships: Non-Contractual Customer relationships may meet the separability criterion for recognition as intangible asset separately from goodwill

Question 6

  • Issue: Legal rights as a necessary condition to demonstrate control over an asset.
  • Response: No, an entity should be able to control future economic benefits in some other way. control over the benefits of know-how could be attained through secrecy.
  • In absence of legal rights to protect customer relationships, exchange transactions for the same or similar non-contractual customer relationships provide evidence that the entity is nonetheless able to control the expected future economic benefits flowing from the customer relationships.

Question 7

  • Issue: Franchise Right can be considered as intangible asset?
  • Response: Franchise right (1) satisfies the criteria of identifiability, control over a resource and existence of future economic benefits, (2) identifiability criterion is fulfilled, (3) future economic benefits from franchise right are expected to flow to the entity, (4) cost can also be measured reliably. Therefore, X Ltd. should recognize the franchise right as an intangible asset.

Question 8

  • Issue: Whether the expenditure on training activities can be recognised as intangible asset?
  • Response: No, training costs incurred to fulfill the contract are within the scope of Ind AS 38. However, paragraph 69(b) of Ind AS 38 includes expenditure on training activities as an example of expenditure that is incurred ‘to provide future economic benefits to an entity, but no intangible asset or other asset is acquired or created that can be recognised. Consequently, paragraph 69 states that such expenditure on training activities is recognised as an expense when incurred.

Question 9

  • Issue: Expenditure incurred in maintaining and developing brand can be differed?
  • Response:No, Such expenditure should be charged off to profit or loss as incurred

Question 10

  • Issue: Expenditure to obtain the right regarding the player can be recognised as an intangible asset?
  • Response: Yes, Since the right in the instant case is contractual. Based on the facts provided in the given case, the player is prohibited from playing in other teams by the terms of the contract which legally binds the player to stay with ABC Ltd for a number of years.

Question 11

  • Issue: Accounting treatment of (1) developed new game called Cloud9 and (2) rights of another video game series called the ‘Headspace’ videogame series.
  • Response:
    (1)In order to determine whether ‘cloud9 videogame series’ meet the aforesaid conditions, following provisions of Ind AS 38 regarding Internally Generated Intangible Assets may be noted: As per paragraph 51 of Ind AS 38, ‘it is sometimes difficult to assess whether an internally generated intangible asset qualifies for recognition because of problems in (a) identifying whether and when there is an identifiable asset that will generate expected future economic benefits; and (b) determining the cost of the asset reliably.In order to determine whether ‘Headspace’ meet the aforesaid conditions, following provisions of Ind AS 38 regarding Separately acquired Intangible Assets may be noted: * As per paragraphs 25 and 26 of Ind AS 38, normally, the price an entity pays to acquire separately an intangible asset will reflect expectations.Therefore, an intangible asset should be recognised in respect of the ‘Headspace' asset at its cost of INR 10,00,000.

Question 12

  • Issue: Is right to access the supplier's software can be recognized as software as per Ind AS 38?
  • Response: a right to receive future access to the supplier’s software does not, at the contract commencement date, give the customer the power to obtain the future economic benefits flowing from the software itself and to restrict others’ access to those benefits. Accordingly, in the given case, Z Ltd. cannot recognise the access to the software over the contract term as intangible asset.

Question 13

  • Issue: Recognise and measure the software development costs incurred by an entity?
  • Response: In order to recognise software development costs described above, the entities will follow the principles of Ind AS 38, Intangible Assets, in relation to recognition and measurement. According to paragraph 54, no intangible asset arising from research (or from the research phase of an internal project) shall be recognised.
  • According to paragraph 57, an intangible asset arising from development (or from the development phase of an internal project) shall be recognised if, and only if, an entity can demonstrate all of the following:
    (a) the technical feasibility of completing the intangible asset so that it will be available for use or sale.
    (b) its intention to complete the intangible asset and use or sell it.
    (c) its ability to use or sell the intangible asset.
    (d) how the intangible asset will generate probable future economic benefits. [Refer: paragraph 17]
    (e) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset.
    (f) its ability to measure reliably the expenditure attributable to the intangible asset during its development.

Question 14

  • Issue: What will be the amount of the software development costs that can be capitalised?
  • Response: The entity should apply the recognition and measurement principles relevant for an internally generated intangible asset.As per paragraph 66 of Ind AS 38, the cost of an internally generated intangible asset comprises all directly attributable costs necessary to create, produce, and prepare the asset to be capable of operating in the manner intended by management.

Question 15

  • Issue: Consideration includes cash and deferred option. At what value should the intangible asset be recognised?
  • Response: Cash price equivalent should be considered as its cost and the intangible asset will be recorded initially at this value .The difference should be recognized as interest expense over the period of credit .

Question 16

  • Issue: Accounting of net assets acquired from Y Limited in this business combination?
  • Response: The identifiable net assets should be recognised separately from goodwill at their acquisition-date fair values.

Question 17

  • Issue: In-process research and development on acquired drugs can be recognised as an intangible asset?
  • Response: Both the drugs undergoing clinical trials acquired in business combinations meet the definition of an intangible asset because they meet the definition of an asset and separability criterion is also met assuming that they can be sold separately. The recognition criteria are always considered to be satisfied for identifiable intangible assets acquired in a business combination. Hence, at the acquisition date, both the drugs should be recognised separately from goodwill as in-process research and development intangible assets at their acquisition-date fair values.

Question 18

  • Issue: Intangible asset pertaining to research project should be measured as what amount of cost incurred for the research and development in an acquired company?
  • Response: Subsequent expenditure is to be accounted for in the same way as expenditure to create an internally generated intangible asset, as research expenses or as development costs added to the carrying amount based on defined criteria.

Question 19

  • Issue: Existing distribution network that is acquired from the acquiree can be recognized as an intangible asset when accounting for acquisition of business by the acquirer.
  • Response: Yes, distribution network of Q Ltd, the arrangement for the marketing of the company’s product, is a non-monetary item without physical substance held for the purpose of supply of goods, identifiable (it is arises from contractual rights), existence of distribution network is the factor for the business acquisition. Hence, at the acquisition date, the distribution network acquired as part of the business acquisition should be recognised as an intangible asset separately from goodwill, at its acquisition-date fair value.

Question 20

  • Issue: Radio operator getting licence without cost.
  • Response: Government has awarded a license to operate the radio station to Entity B free of cost with the condition of operating in remote areas. Based on the above guidance, and subject to it meeting the recognition criteria for grants as per Ind AS 20, Entity B can recognise the intangible asset i.e., license either at its fair value or a nominal amount. The accounting policy should be applied consistently to all intangible assets acquired by way of a government grant.

Question 21

  • Issue: Accounting treatment of exchange transaction among a Mobile service operator to exchange its existing license with a new one among mandatory condition to cover 75% of service
  • Response: The exchange transaction is considered to have commercial substance as per paragraph 46(a) of Ind AS 38 as its future cash flows are expected to change as a result of this exchange transaction

Question 22

  • Issue: Exchange of patented products by two chemical manufacturers with no significant impact on the cash flows of both entities.
  • Response: The transaction lacks commercial substance and no Gain/Loss from this transaction should be recognised in the books of both the entities.

Question 23

  • Issue: Intellectual property rights given for pharmaceutical drug
  • Response: There is commercial substance in the transaction as it is expected to have significant effect on the configuration of the cash flows and business economics of both the entities relative to the fair value of the assets exchanged. Both entities should record the asset received at the fair value of Intellectual property rights. Gain or loss on disposal should be recognized based on the value of intellectual property rights.

Question 24

  • Issue: Exchange of property with a company holding trade secrets.
  • Response:Assuming that the exchange transaction has commercial substance as required by Ind AS 38, wherein entity X’s timing, amount and risk of cash flows are expected to change significantly as a result of exchange of its patent for the patent of entity Y. Entity X will recognize its acquired patent as part of exchange transaction. a gain of INR 20,00,000 arises to entity X, which should be recognised by entity X in its profit or loss. This gain of INR 20,00,000 represents the difference between the carrying amount of entity X’s original patent (INR 30,00,000) and the fair value of the patent given up (INR 50,00,000) to acquire entity Y’s patent.

Question 25

  • Issue: Capitalization on In house Software Development
  • Response: The development costs of internally generated intangible assets are capitalised when the same meet all of the conditions.

Question 26

  • Issue: Past Expensed costs being capitalized
  • Response: The Company cannot capitalize INR 1,00,00,000 subsequently

Question 27

  • Issue: Cost and Revaluation of the same type of Intangible Assets *
  • Response: Since in the given case, the four intangible assets are of a similar nature and use in the entity’s operations, therefore, these should be grouped together as a class for the purpose of subsequent measurement. Hence, it is not permissible to choose cost model for two intangible assets and *Revaluation model for rest of the two assets

Question 28

  • Issue: Any Defined Frequency for Intangible Asset Revaluation *
  • Response: Paragraph 75 of Ind AS 38: Revaluations should be made with 
such regularity that at the end of the reporting period the carrying amount of the asset does not differ materially from its fair value

Question 29

  • Issue:Active market for asset that is Software
  • Response: Paragraph 78 of Ind AS 38: It is un Common for active market to exist.

Question 30

  • Issue: Company is wanting to remeasure previously determined assets.
  • Response: There some points from IAS that could offer some insight and guidance. Paragraph 81 of IAS 38: If an intangible asset in a class of revalued intangible assets
cannot be revalued because there is no active market for this asset, The asset shall be carried at its cost less any accumulated
Amortization and impairment losses, as identified.Paragraph 82 of IAS 38: If the fair value of a revalued intangible asset can no longer be
measured by reference to an active market, the carrying amount of the
asset shall be its revalue amount at the date of the last revaluation By reference to the active
market less any subsequent accumulated amortisation and any Subsequent accumulated impairment losses.

Question 31

  • Issue: Company is revaluing based on what it knows and values being what the block may currently be worth . There is now an active market to do so
    • * **Response:**1. If an intangible asset is revalued the
gross and carrying amount is adjusted in a manner that is consistent with the Revaluation and its adjustment of accumulated amortisation forms part of the Increase or decrease in the carrying amount 
That is part of 85 
and 86 

  1. Or accumulated Amortisation can be eliminated against the gross 
amount

Question 32

  • Issue: At what amount should revaluation be in 3 different transaction, Purchase revaluation to sale
  • Response: Paragraph 87 
states:• The cumulative revaluation
Surplus included in equity 
May be transfer directly to retained
Earnings when surplus realised The whole surplus may realised on  • retirement or disposal of asset However some of the surfaces may
be realised as asset is used by the Entity

Question 33

  • Issue:Factors determining “Useful Life” accounting for Intangible •Assets? * 

    • Response: The first is to check for whether it the useful life has definite amount or indefinite Number production amount, • Technological, technical, commercial or other types
of obsolescence Industrial Stability • Maintenance expenditure
required and the entity’s ability and intention to meet Maintain that certain level  Period of control whether the US for life is dependant on assets of Entity

Question 34

  • Issue: Business Combination , useful Life of Intangible asset by an Entity Where the Aquirer does not intend to use them
  • Response:38 As per Ind AS 38 Para 33: In Acquirer has required Intangible Assets in a Business Combination, which it does not intend actively using but prevent their others from using these assets with a Likeily Contribute To indirect cash flows and 
to other assets with 
that The entity will measure the fair value
of such non Financial Assuming this highest and best use by market participants with Valuation

Question 35

  • Issue: Considerations Evaluated while Determing “Useful Life for Intangible Asse” as indefinite Or Finite?
  • Response: 88 
1A. Entity would assess whether US for life is finite or indefinite and The intangible asset should be limited or the number of 
production To The Entity• •91The 
Term Indefinite does not mean infinite