Question

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.

Answer 1

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.

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