Hi mike
If a company purchased its brand a number of years ago, has capitalized the cost and no amortization has been conducted. Material at 12%
How do we deal with it in a risk of material misstatement question? (regarding UEL)
Do I assume brands have indefinite life if not mentioned ?
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Brands
9y ago#1An intangible asset will not normally have an expected life greater than 20 years but, if the company can demonstrate that they are working hard to maintain the brand (advertising, sponsorship, Coca Cola) then it is acceptable to not amortise the brand
Without that regular expense to maintain the brand, it should normally be amortised over a period not exceeding 20 years
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