All intangibles must be written down when their recognizable amount is less than their carrying amount.

Question

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According to accounting standards, intangibles must be tested for impairment annually, and if their recognizable amount (fair value) is less than their carrying amount (book value), then they must be written down to their fair value. This ensures that the intangible asset is accurately reflected on the balance sheet.

All Intangibles Must Be Written Down When Their Recognizable Amount