Assertion (A): Under Ind AS 38, an intangible asset with an indefinite useful life is not amortized. Reason (R): Its useful life cannot be foreseen, so it is tested for impairment annually under Ind AS 36. Choose the correct option.
A.A is false but R is true
B.A is true but R is false
C.Both A and R are true and R is the correct explanation of A
D.Both A and R are true but R is NOT the correct explanation of A
Explanation:
Ind AS 38 states that indefinite-life intangible assets are not amortized because their useful life is not foreseeable. Instead, Ind AS 36 requires them to be tested for impairment annually. R correctly explains A.
Explanation:
Personal accounts represent individuals, firms, or companies. The rule dictates debiting the person receiving the benefit and crediting the provider.
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