Which of the following is correct with respect to when the impairment test must be performed?
A)An annual test is required for definite lived assets under IFRS.
B)An annual test is required for definite lived assets under ASPE.
C)An annual test is required for indefinite lived assets under IFRS.
D)An annual test is required for indefinite lived assets under ASPE.

Question

Quizplus · Accepted Answer

According to IFRS, an annual impairment test is required for indefinite lived assets, such as goodwill or intangible assets with an indefinite useful life. Definite lived assets, such as property, plant, and equipment, are only tested for impairment when there are indicators of impairment, such as a significant decline in the asset's market value or a significant change in the asset's physical condition. ASPE also requires impairment testing for indefinite lived assets, but only when there are indicators of impairment.

Which of the Following Is Correct with Respect to When