A client has produced and narratted with other actors two new e books. These are sold on sites such as Amazon, so future economic benefits will arise in terms of royalites. The rights to pubilsh these e-books could be sold or lincensced to another company. The accounts are prepared using FRS102.
Based on this would it be correct to classify orginial production costs as an intangiable assets and amortisie evenly over 5 years.
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Admittedly I haven't had to get involved with useful lives of intangibles so far in my career, but general principles is that costs should be written off over the period they provide a benefit. I.e. if the client thinks people will be buying this E Book (or there will be a market for the rights to it) for 5 years then that would be entirely appropriate.
If sales will be negligible after two years then a much shorter write off period would be sensible.