Testing intangible assets with indefinite useful lives for impairment:
A) occurs every year.
B) occurs when only there has been an indication of an impairment in the value of the asset such as a reduction in cash flow generation, idle assets, etc.
C) never occurs because the asset has an indefinite useful life.
D) whenever required by the company's auditors.

Question

Quizplus · Accepted Answer

Intangible assets with indefinite useful lives must be tested for impairment annually, regardless of whether there is any indication of impairment.

Testing Intangible Assets with Indefinite Useful Lives for Impairment