U.S.GAAP requires firms to recognize an impairment loss on a nonamortized intangible other than goodwill whenever the carrying value of the asset exceeds its fair value.

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This statement is true. Under U.S. GAAP, impairment of a nonamortized intangible asset (such as a patent or trademark) other than goodwill must be recognized when the carrying value of the asset is greater than its fair value. This impairment loss must be recognized on the income statement as a decrease in net income.

USGAAP Requires Firms to Recognize an Impairment Loss on a Nonamortized