What Is the Nature of the Recoverability Test for Indefinite-Life

question 37

Multiple Choice

What is the nature of the recoverability test for indefinite-life intangible assets?

• A)Is the carrying value of the asset greater than future undiscounted cash flows generated by the asset?
• B)Is the carrying value of the asset greater than future discounted cash flows generated by the asset?
• C)Is the carrying value of the asset greater than the fair value of the asset?
• D)There is no recoverability test for indefinite-life intangible assets.

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