Question

Companies should evaluate indefinite life intangible assets at least annually for:

a. recoverability.
b. amortization.
c. impairment.
d. estimated useful life.

Answer 1

Companies should evaluate indefinite life intangible assets at least annually for recoverability, impairment, and estimated useful life.

Step-by-step explanation:

Companies should evaluate indefinite life intangible assets at least annually for:

1. recoverability: This involves assessing whether the future cash flows generated by the asset will be sufficient to recover its carrying value.
2. impairment: Companies need to determine if there has been a significant decrease in the asset's value below its carrying value, which would require an impairment loss.
3. estimated useful life: It is important to review and update the estimated useful life of the asset to ensure accurate amortization and financial reporting.