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Lockfine had constructed a database of electronic maps. The costs incurred in bringing the information about a certain region of the world to a higher standard of performance are capitalized. Thr costs relating to maintaining the information about a certain region at the same standard of performance are expensed.
In the answer its givenAn important underlying assumption in assessing the useful lifr of an intangible asset is that it reflects only the level of future maintenance expenditure required to maintain the asset at its standard of performance assessed at the time of estimating the assets useful life . The indefinite useful life should not depend on planned future expenditure in excess of that required to maintain the asset
Can u explain this criteria of ias 38 in
simple ? I cannot understand thanksHi,
The simple criteria of IAS 38 are explained in the notes and the videos. If the asset has a finite life then we amortise it, if not then we perform annual impairment reviews.
Thanks
Sir i want to know about the costs which it has capitalized and expensed . The costs incurred in bringing the information to a higher standard of performance are capitalized . Bringing the information at same standard of performance is expensed i want to know about this criteria please
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