The advantage of setting up brands as an asset without amortization is that

Question

Quizplus · Accepted Answer

Brand names have value and are being maintained through advertising, so it makes sense to treat them as assets that do not lose value over time through amortization. This approach is also consistent with the generally accepted accounting principles of accrual accounting. However, it may not be the most conservative approach to accounting for brands as it does not account for any potential decline in brand value.

The Advantage of Setting Up Brands as an Asset Without