What Should an Entity Evaluate When Making an Initial Impairment

question 53

Essay

What should an entity evaluate when making an initial impairment assessment of an intangible asset (other than goodwill)?

---

Definitions:

Lanham Act

The primary federal trademark statute in the United States, providing protection against trademark infringement and unfair competition.

Truth In Lending Act

A national statute aimed at encouraging the knowledgeable utilization of consumer credit through mandating the revelation of its conditions and expenses.

Unsecured Open-End Credit

A line of credit that does not require collateral and can be used repeatedly up to a certain limit.

Annual Percentage Rate

The annual rate charged for borrowing or earned through an investment, expressed as a percentage that represents the actual yearly cost of funds over the term of a loan or income from an investment.