Final answer:
Long-term assets with an indefinite life are not subject to depreciation because their ability to generate cash flows does not foreseeably end.
Step-by-step explanation:
Long-term assets with a indefinite life may not be depreciable. This is because depreciation is a method used to allocate the cost of a tangible asset over its useful life. By definition, an asset with an indefinite life does not have a foreseeable end to its ability to generate cash flows, and thus it is not subject to the process of depreciation.
However, these assets may still be subject to impairment, which is a decrease in the recoverable value of the fixed asset. An impairment test must be conducted to determine if the asset is impaired and the value of any such impairment.