If an Intangible Asset with an Indefinite Life Becomes Impaired

question 103

Multiple Choice

If an intangible asset with an indefinite life becomes impaired, the asset must be

• A) written down to cost.
• B) written down to fair value.
• C) sold at its net realizable value.
• D) No adjustment is required and a loss will be recorded when the intangible asset is sold.

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Definitions:

Principle-Based Statement

A declaration or assertion that is grounded in established principles or fundamental truths.

Code of Ethics

A set of principles and standards that guides ethical professional conduct and decision making within an organization.

Ethical Tolerances

The degree to which behavior deviating from ethical norms is accepted or allowed within a group, organization, or society.

Ethics Ombudsperson

An official given the responsibility of corporate conscience who hears and investigates ethical complaints and informs top management of potential ethical issues.