What is the nature of the recoverability test for indefinite-life intangible assets?
A) Is the carrying value of the asset greater than the sum of undiscounted future cash flows generated by the asset?
B) Is the carrying value of the asset greater than the sum of future discounted cash flows generated by the asset?
C) Is the carrying value of the asset greater than the fair value of the asset?
D) There is no recoverability test for indefinite-life intangible assets.

Question

Quizplus · Accepted Answer

Indefinite-life intangible assets are not subject to a recoverability test because they are not amortized. Instead, they are tested for impairment annually or more frequently if there are indicators of impairment.

What Is the Nature of the Recoverability Test for Indefinite-Life