The useful lives of many franchises are indefinite and therefore are not amortized.

Name: The useful lives of many franchises are indefinite and therefore are not amortized.
Brand: Quizplus
Rating: 4.9 (31 reviews)

Question

Quizplus · Accepted Answer

Franchises with indefinite useful lives are not amortized. This is because their value is expected to persist for an indefinite amount of time, rather than being used up over a specific period. However, franchises with finite useful lives are amortized over the expected period of benefit, typically between 10 and 20 years.

The Useful Lives of Many Franchises Are Indefinite and Therefore