The acquisition cost of an intangible asset should be charged to expense over the shorter of its legal or useful life, whichever is shorter.

Question

Quizplus · Accepted Answer

The acquisition cost of an intangible asset is amortized over its useful life, which is the shorter period between its legal life and its estimated useful life to the company, reflecting the pattern in which the asset's economic benefits are consumed or used up.

The Acquisition Cost of an Intangible Asset Should Be Charged