alleryAmortisation applies to:
ALand assets only
BInventories all categories
CIntangible assets generally
DTrade receivables aging
Answer & Solution
Correct answer: C. Intangible assets generally
1. Amortisation is the systematic allocation of cost of intangible assets over useful life.
2. Tangible assets are depreciated; intangibles are amortised.
3. Land is generally not depreciated; inventories and receivables follow different rules.
_Source: ICAI BoS Foundation Paper 1, Ch 5 "Depreciation & Amortisation", §6 amortisation_
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