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

Question

Quizplus · Accepted Answer

This statement is true. Accounting standards require that intangible assets be assessed annually for impairment, and if their fair value has declined below their book value, an impairment loss must be recorded.

Each Year an Intangible Asset's Value Is Assessed Which Is