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An indefinite-life intangible asset has been tested for impairment in Q1 of FY 20X1-22. The asset must next be tested:
AAt year-end always
BAt the SAME time annually (Q1 of FY 20X2-23) AND whenever there is an indication of impairment in any interim
CEvery five years
DOnly when an indicator arises
Answer & Solution
Correct answer: B. At the SAME time annually (Q1 of FY 20X2-23) AND whenever there is an indication of impairment in any interim
Indefinite-life intangibles need annual testing at the SAME TIME each year (provides comparability) AND additional testing whenever an indicator arises. If an indicator triggers a test, the annual schedule continues from the original anchor month.
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