IP Ltd reports the following intangible assets:

Intangible assets

$m

Patents at directors' valuation141

less Accumulated amortisation(35)

106

Trademarks, at cost14

Goodwill, at cost38

less Accumulated amortisation(8)

30

Brand name 88

Licence at cost 9

less Accumulated amortisation(1)

8

Intangible assets (2019)

Patents were acquired at a cost of $70 million and were revalued soon afterwards. They have an estimated life of 16 years, of which 12 years remain.

The trademark can be renewed indefinitely, subject to continued use. The cost represents registration fees, which were initially expensed but recognised five years later after the trademark had started to become recognised by consumers.

Goodwill has been purchased and amortised on the straight-line basis.

The brand name is stated at fair value and is internally generated.

The licence has a ten-year life, of which nine years remain. The licence can be traded in an active market and has a fair value of $16 million.

Required

Download and completeQuestion 3A (XLSX 10 KB). You will need to apply AASB 138, state the carrying amount and whether each asset/asset class should be amortised. Specify any choice of methods permitted for IP Ltd.

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