If an intangible asset with an indefinite life becomes impaired, the asset must be
A) written down to cost.
B) written down to fair value.
C) sold at its net realizable value.
D) No adjustment is required and a loss will be recorded when the intangible asset is sold.

Question

Quizplus · Accepted Answer

Intangible assets with an indefinite life that become impaired must be written down to their fair value. This adjustment reflects the decrease in the future economic benefits expected from the asset.

If an Intangible Asset with an Indefinite Life Becomes Impaired