为什么license是indefinite

问题如下：

Question A company acquires a 5-year license for a product it plans to continue selling for the foreseeable future. The license can be renewed at minimal cost. The license should be:

选项：

A.carried on the balance sheet at historical cost.

B.amortised using the straight-line method over its estimated useful life.

C.amortised using the units-of-production method over its estimated useful life.

解释：

1. Correct because the license has an indefinite life and is not amortised. Only those intangible assets assumed to have finite useful lives are amortised over their useful lives, following the pattern in which the benefits are used up. Examples of intangible assets with indefinite useful lives include an acquired license that, although it has a specific expiration date, can be renewed at little or no cost and an acquired trademark that, although it has a specific expiration, can be renewed at a minimal cost and relates to a product that a company plans to continue selling for the foreseeable future. Intangible assets with indefinite lives are not amortised. Instead, they are carried on the balance sheet at historical cost but are tested at least annually for impairment.

2. Incorrect because the license has an indefinite life and is therefore not amortised. Intangible assets with indefinite lives are not amortised. Instead, they are carried on the balance sheet at historical cost but are tested at least annually for impairment.

3. Incorrect because the license has an indefinite life and is therefore not amortised. Intangible assets with indefinite lives are not amortised. Instead, they are carried on the balance sheet at historical cost but are tested at least annually for impairment.

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