Useful Economic Life

Definition

The estimated period over which an intangible asset is expected to contribute economic benefits to its owner, used as the amortisation period for accounting and valuation purposes. Useful economic life determinations require analysis of contractual terms, renewal history, competitive dynamics, technological obsolescence risk, and legal protection periods. Under IAS 38, intangible assets with indefinite useful lives are not amortised but are subject to annual impairment testing.