AASB 138 - Intangible Assets - July 2004
Example 1 An acquired customer listExample 1 An acquired customer list
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Example 1 An acquired customer list
A direct-mail marketing company acquires a customer list and expects that it will be able to derive benefit from the information on the list for at least one year, but no more than three years.
The customer list would be amortised over management’s best estimate of its useful life, say 18 months. Although the direct-mail marketing company may intend to add customer names and other information to the list in the future, the expected benefits of the acquired customer list relate only to the customers on that list at the date it was acquired. The customer list also would be reviewed for impairment in accordance with AASB 136 Impairment of Assets by assessing at the end of each reporting period whether there is any indication that the customer list may be impaired.