Separately identified intangible assets are accounted for by amortizing:
A) exclusively by using impairment testing.
B) based upon a pattern that reflects the benefits conveyed by the asset.
C) over the useful economic life less residual value using only the straight-line method.
D) over a period not to exceed a maximum of 40 years.

Question

Quizplus · Accepted Answer

Separately identified intangible assets are generally amortized based on a pattern that reflects the benefits conveyed by the asset, which is typically its useful economic life. This reflects the fact that the asset's value is expected to decline over time as it provides benefits to the company. However, impairment testing may also be used if there are indicators that the asset's value has declined unexpectedly. There is no requirement to use the straight-line method or to limit the amortization period to 40 years.

Separately Identified Intangible Assets Are Accounted for by Amortizing