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Methods of amortising intangible assets

This issue provides guidance on selecting an appropriate amortisation method for intangible assets in accordance with MFRS 138 Intangible Assets.

MFRS 138 requires that an entity shall choose either the cost model or the revaluation model as its accounting policy. In practice, it is likely that the cost model will be generally preferred by most entities.

Under the cost model, after initial recognition, an intangible asset shall be carried at cost less accumulated amortisation and accumulated impairment loss, if any.