Which of the following is the impairment test for indefinite-life intangibles?
A) recoverability test and then fair value test
B) fair value test and then recoverability test
C) recoverability test
D) fair value test

Question

Quizplus · Accepted Answer

The impairment test for indefinite-life intangibles, such as goodwill, involves directly comparing the fair value of the intangible asset to its carrying amount on the balance sheet. If the fair value is less than the carrying amount, an impairment loss is recognized. This process does not include a recoverability test, which is used for long-lived assets to be held and used.

Which of the Following Is the Impairment Test for Indefinite-Life