Asked by
Larissa Rodriguez
on Oct 16, 2024Verified
Testing intangible assets with indefinite useful lives for impairment:
A) occurs every year.
B) occurs when only there has been an indication of an impairment in the value of the asset such as a reduction in cash flow generation, idle assets, etc.
C) never occurs because the asset has an indefinite useful life.
D) occurs whenever required by the company's auditors.
Intangible Assets
Assets that lack physical substance but provide economic benefits to a company, such as trademarks, patents, and copyrights.
Impairment
The reduction in the recoverable value of an asset below its carrying amount on the balance sheet.
Indefinite Useful Lives
An accounting classification for intangible assets that are not expected to expire or have an end to their useful economic life.
- Understand the handling of intangible assets with undefined useful lives and the methodologies for conducting impairment evaluations.
Verified Answer
MC
Learning Objectives
- Understand the handling of intangible assets with undefined useful lives and the methodologies for conducting impairment evaluations.