Final answer:
Goodwill is the intangible asset not subject to the recoverability test when testing for impairment because unlike other intangible assets, it is not amortized and undergoes a different impairment test at the reporting unit level.
Step-by-step explanation:
The intangible asset that is not subject to the recoverability test when testing for impairment is Goodwill. Unlike other intangible assets such as patents, R&D costs for a patent, and trademarks, Goodwill is unique as it is not amortized and is not subject to the same impairment testing as other identifiable intangible assets. Goodwill is tested for impairment at the reporting unit level, often annually, and whenever there is an indication that it might be impaired. It represents the premium paid over the fair value of identifiable net assets in a business acquisition. This differs from the recoverability test that is applied to other long-lived assets, including intangibles, where the future undiscounted cash flows generated by the asset are compared to the asset's carrying amount to determine if impairment is necessary.
When considering other intangible assets, a patent or a trademark with an indefinite useful life is subject to amortization only if it has a definite useful life, and it is tested for impairment if there are indicators of impairment. R&D costs for a patent hold future economic potential but are expensed as incurred and thus do not represent an asset on the balance sheet unless they meet specific capitalization criteria.