FASB has argued that not amortizing certain intangible assets is inappropriate because they have indefinite lives.This argument is supported by which theoretical characteristic?
A)understandability
B)representationally faithful
C)relevance
D)decision usefulness

Question

Quizplus · Accepted Answer

The argument is supported by the characteristic of representational faithfulness, as it ensures that financial statements accurately reflect the economic reality of indefinite-lived intangible assets.

FASB Has Argued That Not Amortizing Certain Intangible Assets Is