Is the impairment test for$$ tangible$,$ long$-$term operating assets identical to the impairment test for intangible$$ assets? Explain.

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Part $1$

A$.$

Yes. The impairment test is the same for all types of assets. Tangible and intangible assets both only have one$$ requirement: that the impairment test be done annually.

B$.$

No$.$ The impairment test used for$$ tangible$,$ long$-$term operating assets is different than the impairment test used for $$ indefinite$-$life intangible assets. The impairment tests used depend upon the type of asset. Different procedures and tests are used for each type of asset.

C$.$

No$.$ Intangible assets are treated as goodwill for the purpose of impairment testing.$$ Tangible, long$-$term operating assets are measured prior to impairment.

D$.$

Yes. Both require measurement prior to impairment