The client should have methods in place to identify and account for intangible-asset impairments.

Question

Quizplus · Accepted Answer

The client should have methods in place to identify and account for intangible-asset impairments as it is a crucial aspect of financial reporting. Impairment occurs when the carrying amount of an asset exceeds its recoverable amount, and this can happen to intangible assets as well as tangible assets. Therefore, the client should have a system in place to identify and evaluate any potential impairments of their intangible assets and take necessary actions to account for them in their financial statements.

The Client Should Have Methods in Place to Identify and Account