Which is an exception to the rule: "test for impairment only if there are indicators for impairment"?
A)Intangible assets with indefinite lives.
B)Intangible assets with definite lives.
C)Internally generated goodwill.
D)Tangible assets with definite lives.

Question

Quizplus · Accepted Answer

Intangible assets with indefinite lives are required to be tested for impairment annually, regardless of whether there are indicators for impairment. This is because they have an indefinite useful life and thus, their future cash flows are unpredictable, making impairment testing necessary.

Which Is an Exception to the Rule: "Test for Impairment