Final answer:
The impairment loss for an indefinite-life intangible asset arises when its fair value is less than its carrying value.
Step-by-step explanation:
The impairment loss for an indefinite-life intangible asset arises when its fair value is less than its carrying value.
Under the Accounting Standards for Private Enterprises (ASPE), when the fair value of an indefinite-life intangible asset is less than its carrying value, an impairment loss must be recognized.
For example, if a company has an indefinite-life intangible asset such as a trademark, and its fair value decreases due to changes in market conditions or other factors, the company would need to assess whether an impairment loss should be recorded.