How is the fair value allocation of an intangible asset allocated to expense when the asset has no legal, regulatory, contractual, competitive, economic, or other factors that limit its life?
A) Equally over 20 years.
B) Equally over 40 years.
C) Equally over 20 years with an annual impairment review.
D) No amortization, but annually reviewed for impairment and adjusted accordingly.
E) No amortization over an indefinite period time.

Question

Quizplus · Accepted Answer

When an intangible asset has an indefinite life, it is not amortized but is instead tested for impairment annually.

How Is the Fair Value Allocation of an Intangible Asset