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      Question

      Which intangible asset must be tested for impairment

      annually regardless of indicators ?
      A Patent with 10-year life Correct Answer Incorrect Answer
      B Copyright with finite life Correct Answer Incorrect Answer
      C Goodwill Correct Answer Incorrect Answer
      D Franchise license with expiry Correct Answer Incorrect Answer
      E Research phase expenditure Correct Answer Incorrect Answer

      Solution

      Goodwill and intangible assets with indefinite life require annual impairment testing. Under  IAS 36 Impairment of Assets  and  US GAAP , intangible assets with an indefinite useful life, goodwill, and intangible assets not yet available for use must be tested for impairment annually regardless of indicators.

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