WC20 acquired a number of radio frequency licenses, which it has capitalised in accordance with the requirements of IFRS. The licenses give the entity a contractual right to broadcast exclusively on specified radio frequencies for the next ten years. The licenses can be sold to third parties. Due to the limited availability of these licenses, and the commercial success of the radio stations using those frequencies, management considers the value of the licenses to be considerably more than carrying amount and intends to revalue them. The entity has conducted a valuation using a professional qualified valuer. Can management carry the licenses at revalued amounts? Give reasons for your answer

Answer rating: 100% (QA)

Answer As per IAS 38 for intangibible assets suggest that entity has ... View the full answer