Nyame Ltd incurred the following expenditure during the year:
Nyame Ltd owns the rights to a popular range of books, which it purchased from another entity for GH¢180,000 few years ago. The rights were not amortised as they have been attributed an indefinite useful life. The books are still very popular so no impairment losses have been necessary and it was valued by an independent valuer at GH¢280,000 at the year-ended 31 December 2017.
The company’s policy is to use the revaluation model for its intangible assets where a market valuation is available and permitted.
Required:
Recommend with suitable calculations the carrying amount of intangible assets at the end of the year 31 December 2017 according to the guidance given in IAS 38: Intangible assets. (5 marks)
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