Ias 38 – 2021 Issued ifrs standards (Part A)

An entity shall assess whether the useful life of an intangible asset is finite
or indefinite and, if finite, the length of, or number of production or
similar units constituting, that useful life. An intangible asset shall be
regarded by the entity as having an indefinite useful life when, based on an
analysis of all of the relevant factors, there is no foreseeable limit to the
period over which the asset is expected to generate net cash inflows for the
entity.
The accounting for an intangible asset is based on its useful life. An intangible
asset with a finite useful life is amortised (see paragraphs 97–106), and an
intangible asset with an indefinite useful life is not (see paragraphs 107–110).
The Illustrative Examples accompanying this Standard illustrate the
determination of useful life for different intangible assets, and the subsequent
accounting for those assets based on the useful life determinations.
Many factors are considered in determining the useful life of an intangible
asset, including:
(a)
the expected usage of the asset by the entity and whether the asset
could be managed efficiently by another management team;
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