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Thor has owned broadcast right which will be automatically renewed every 10 Thor Corporation is British Corporation which has run operation in broadcast years. The corporation did not have any conflicts with British Government which would lead to be terminated this contract. Moreover, the broadcast right has benefited to corporation all over its contract period, and the contract was already renewed for twice. On December 31, 2018, British Government has planned to change from automated renewal to concession bidding, so the next renewal is uncertain. However, the existing broadcast right remains 2 years of economic benefit period, and Thor Corporation will obtain cash inflows over these two years period.
Required:
Problem 1) According to IAS 38, How should Thor Corporation deal with its broadcast right in the period before 2018?
Problem 2) According to IAS 38, How should Thor Corporation deal with its broadcast right in the period after 2018?
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