Final answer:
Intangible assets with a definite life are amortized over their useful life using methods like the straight-line method. Intangible assets with an indefinite life are not amortized but are tested annually for impairment and adjusted if necessary.
Step-by-step explanation:
Intangible assets with a definite life are amortized over their useful life. The process of amortization involves systematically allocating the cost of an intangible asset over the period it is expected to contribute to the organization's revenue. The common method of amortization for intangible assets with a definite life is the straight-line method, meaning the same amount is expensed each period.
On the other hand, intangible assets with an indefinite life are not amortized since their useful life is not predictable. Such assets are instead tested at least annually for impairment, which is a reduction in the recoverable value of the asset below its book value. If an impairment is found, a company will write down the value of the intangible asset to reflect this decrease in value.