An impairment model is used
A) To assess whether asset write-downs are appropriate for indefinite-lived assets.
B) To calculate the fair value of intangible assets.
C) To calculate the amortization of indefinite-lived assets over their useful lives.
D) To determine whether the fair value of assets should be recognized.
E) To determine the likelihood that the fair value of an assumed liability will increase.

Question

Quizplus · Accepted Answer

An impairment model is used to assess whether asset write-downs are appropriate for indefinite-lived assets, as these assets are not amortized but are tested for impairment annually or when there is an indication of impairment.

An Impairment Model Is Used