Each year an intangible asset is assessed to estimate its value which is then compared to the existing book value in order to determine if impairment must be recorded.

Question

Quizplus · Accepted Answer

This statement is true as per the accounting standards. Intangible assets like goodwill or patents are assessed annually for any possible impairment, and if the estimated fair value is lower than the book value, impairment must be recorded to reflect the loss in value.

Each Year an Intangible Asset Is Assessed to Estimate Its