Practice prompt · Q:intangibles-research-software-and-goodwill/intangible-impairment-trigger-001

Say which intangibles are tested and when

Tests whether the learner routes an intangible to annual testing or to testing on a triggering event.

Updated Aug 18, 2026 Review due Nov 18, 2026
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A company carries a patent with eight years of remaining life, a trademark it intends to renew indefinitely, and goodwill from an acquisition three years ago.

The routing follows amortization. An asset whose carrying amount is written down every period gets a lighter test. An asset that would otherwise sit unchanged forever gets the annual one.

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Answer: a

Choice a. Amortized means tested on a trigger; not amortized means tested at least annually.