Explain how impairment losses for intangible assets with indefinite useful lives are determined.

What will be an ideal response?


Answers will vary.
Intangible assets with indefinite useful lives must be tested for impairment annually. The impairment test consists of comparing the fair value of the intangible asset to its carrying value (book value). If the fair value is less than the book value, an impairment loss must be recognized.

Business

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