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However, IAS 38 Intangible Assets sets out a rebuttable presumption that amortisation based on revenue generated by an activity which includes the use of an intangible asset is not appropriate.
sir i don’t understand why this statement says so?
Can you give an example to prove it right, so that i can understand it better?
You can either amortise on a time basis or link the amortisation to (say) expected sales. IAS 38 seems to imply that we should use a time basis unless there is a very good reason not to.
You can find more detail here:
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