Several years ago, Baxter Ltd acquired for $160 000 a patent for the manufacture of special ‘seal-tight’ plastic containers. After 5 years, the manufacture of these containers was discontinued because of the development of a new, more environmentally-friendly container by a competitor. Baxter Ltd is continuing to deduct amortisation expense of $8000 per year based on the patent’s life of 20 years. Discuss whether this treatment is in accord with accounting standards.