Which of the following statements is true with respect to intangible assets with indeﬁnite lives?
A) They should be amortized over a period of 40 years.
B) They should be evaluated each year to determine if there has been any impairment in their value.
C) They should be expensed to income in the year they are acquired.
D) They are not amortized or written down but remain on the company's balance sheet at their original cost.

Question

Quizplus · Accepted Answer

Intangible assets with indefinite lives are not amortized but are subject to an annual impairment test to determine if their value has decreased, which would require a write-down of their carrying amount on the balance sheet.

Which of the Following Statements Is True with Respect to Intangible