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How long to amortise intangible asset (professional football contract) ?


How long to amortise intangible asset (professional football contract) with definite life 4 years when there is an option (of the owner) to prolong the life to six year? Thank you.

asked Jan 31, 2017 in IAS 38 - Intangible Assets by Martin

1 Answer

0 votes
Hello

As per IAS 36.97 – 36.99, if the cost related to renewal of contract is insignificant and renewal of contract is confirmed, then the amount of contract would be amortized on 6 six years. Whereas if the renewal of contract is not confirmed or the cost of renewal is significant then amount of contract would be amortized on 4 years.

Regards
answered Jan 31, 2017 by umarhussainia Level 5 Member (11,320 points)


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