Final answer:
The measurement of an impairment loss for intangible assets with indefinite useful lives is complex and entails determining if an impairment is indicated and then measuring the excess of carrying amount over the recoverable amount.
Step-by-step explanation:
The measurement of an impairment loss for intangible assets with indefinite useful lives is a complex process. In accounting, an impairment loss occurs when the carrying amount of an intangible asset exceeds its recoverable amount, which is the higher of the asset's fair value less costs of disposal and its value in use. To measure an impairment loss, a company must first determine if an impairment is necessary by comparing the carrying value to the estimated recoverable amount. If impairment is indicated, the company must then measure the amount of impairment as the excess of the carrying amount over the recoverable amount. This process often involves significant judgment and estimation as it may include forecasting future cash flows and selecting appropriate discount rates.