The recoverability test is used to determine any impairment loss on which of the following types of intangible assets?
A) Indefinite life intangibles other than goodwill.
B) Indefinite life intangibles.
C) Goodwill.
D) Limited life intangibles.

Question

Quizplus · Accepted Answer

The recoverability test is applied to limited life intangibles to determine if an impairment loss should be recognized. Indefinite life intangibles and goodwill do not use the recoverability test; instead, they are tested for impairment annually or more frequently if events indicate potential impairment.

The Recoverability Test Is Used to Determine Any Impairment Loss