Asked by Vanesty Lozada on May 01, 2024
Verified
Which of the following assets need to be tested for impairment every year? I intangible assets with indefinite useful lives
II intangible assets not yet available for use
III intangible assets accounted for under the revaluation method
IV goodwill acquired in a business combination
A) I, II and III only.
B) II, III and IV only.
C) I, III and IV only.
D) I, II and IV only.
Intangible Assets
Non-physical assets of value owned by a firm, such as patents, trademarks, goodwill, and copyright.
Goodwill
An intangible asset that arises when a business is acquired for more than the fair value of its identifiable net assets, reflecting aspects like brand reputation, customer relations, and patents.
Business Combination
A merger or acquisition in which an acquirer purchases the assets or shares of another business.
- Identify the need for yearly impairment assessments on selected asset groups.
Verified Answer
Learning Objectives
- Identify the need for yearly impairment assessments on selected asset groups.
Related questions
Goodwill Acquired Under a Business Combination Is Subject to an ...
The FASB Established Principles for Evaluating Asset Impairment Because It ...
An Impairment Loss Is the Difference Between the Carrying Value ...
If the Book Value of an Indefinite-Lived Intangible Asset (E ...
For Purposes of Impairment Tests,the Fair Value of an Asset ...