Conmen Limited manages and operates toll roads on major national routes throughout the

country. The company purchased a licence to operate a toll road in the Eastern Cape

seventeen years ago for an amount of R$10000000,$ this right being correctly recognised as

an intangible asset on date of purchase.

It was expected that the roll road would be in use for twenty years and that the economic

benefits would flow to the entity evenly over this period.

The estimated toll road usage is $1000000$ cars per year. At the time, there were no plans to

construct alternate roads in the area. There is no active market for toll road licences.

During the current year, government announced plans to construct a bridge in an area that

would cause a significant reduction in the usage of the toll road. Government began

construction immediately.

The directors estimate that the economic benefits flowing to the entity will decrease each

year over the remaining three years of the licence, with an estimated toll road usage

expected to drop to $800000$ cars, $600000$ cars and $400000$ cars respectively, over the

remaining three years.

Required:

Discuss the measurement of Conmen Limited$$s Eastern Cape toll road licence.