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Question - Readers Ltd acquired two copyrights during 2020. One copyright related to a textbook that was developed internally at a cost of $41 000. This book is estimated to have a useful life of 5 years from 1 September 2020, the date it was published. The second copyright was purchased from the University Press on 1 December 2020 for $24 000. This book, which analyses Aboriginal history in Western Australia prior to 2000, is considered to have an indefinite useful life.
Required - Discuss how these two copyrights should be reported in the statement of financial position of Readers Ltd at 30 June 2021 in accordance with AASB 138 "Intangible Assets".
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