Final answer:
The correct approach under IFRS for impairment testing of intangible assets is the recoverable amount model for both limited-life and indefinite-life intangibles. ASPE uses the cost recovery impairment model for limited-life intangibles and requires an impairment test for indefinite-life intangibles.
Step-by-step explanation:
The correct statement regarding the impairment of intangible assets is: IFRS requires the use of a recoverable amount model for limited-life and indefinite-life intangibles, while ASPE requires the use of the cost recovery impairment model for limited-life intangibles, and an impairment test for indefinite-life intangibles. IFRS does not use the rational entity impairment model. The recoverable amount model involves comparing the carrying amount of the asset to its recoverable amount, which is the higher of the asset's fair value less costs of disposal and its value in use. If the carrying amount exceeds the recoverable amount, an impairment loss is recognized. For indefinite-life intangibles under IFRS, an impairment test is required annually, regardless of whether there is an indication of impairment. ASPE's cost recovery model involves determining whether future undiscounted cash flows associated with the asset will be sufficient to recover the asset's carrying amount; if not, an impairment is recognized based on the excess of carrying amount over fair value.