JB taxi services owns a freely transferable taxi operators license, which it acquired on 1 January 2017
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JB taxi services owns a freely transferable taxi operator’s license, which it acquired on 1 January 2017 at an initial cost of RO 20,000. The useful life of the license is 10 years based on the date it is valid for. The entity uses the straight-line method to amortize the intangible. Such license are frequently traded between existing operators or with aspiring operators. On 31stDecember 2018 due to a government permitted increase in fixed taxi fares, the traded value of such a license was RO 24,000.
Provided necessary treatment as per IAS 38.
Related Book For
Intermediate Accounting Volume 1
ISBN: 978-1119496496
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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