What is the maximum period for goodwill amortisation under FRS 102 if its useful life cannot be determined?

Under FRS 102, if the useful life of goodwill cannot be determined, the maximum amortisation period is set at ten years. This aligns with the principles established within FRS 102 regarding the treatment of intangible assets. The standard requires that if an asset, such as goodwill, has an indefinite useful life, it should not be amortised but instead tested for impairment annually. However, for goodwill where a finite life is assumed but the specific duration cannot be reliably estimated, a maximum amortisation period of ten years is specified. This approach provides a structured way to reflect the consumption of the economic benefits of the asset over time while ensuring that the resultant figures are reasonable and reflect the entity’s financial position accurately.