An intangible asset with an indefinite life is not amortized but is periodically reviewed for impairment.

Name: An intangible asset with an indefinite life is not amortized but is periodically reviewed for impairment.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Intangible assets with indefinite lives are not amortized because their economic benefit period cannot be reliably estimated. Instead, they are tested at least annually for impairment to determine if their carrying value exceeds their recoverable amount.

An Intangible Asset with an Indefinite Life Is Not Amortized