Ursula Ltd

Multiple Choice

Ursula Ltd. has a subsidiary that has an intangible capital asset. It has not been recorded on the subsidiary's books, but at the date of acquisition, the asset had a fair value of $350,000 and an indefinite economic life. How should Ursula show the asset on its consolidated statement of financial position?

A) $350,000 less accumulated amortization (calculated over 10 years) and any impairment losses.
B) $350,000 less accumulated amortization (calculated over 40 years) and any impairment losses.
C) The company should not show the asset on the consolidated financial statement as the subsidiary does not do so.
D) $350,000 less any impairment losses.