# ASC 350-30-35: Intangibles—Goodwill and Other — General Intangibles Other Than Goodwill — 35 Subsequent Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/350/30/#35-subsequent-measurement) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:731a5dc9b93a7c81e46f0450949f9084def9f2211f67ae3a18f423c72dc19aa3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-30-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/350/30/#35-subsequent-measurement) SEC content: no #### Determining the Useful Life of an Intangible Asset ##### [350-30-35-1](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:b87908754ac1bb1e2f3b97f8986a918ab361ff9f34c4855ff860c6030c033afc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The accounting for a recognized intangible asset is based on its [useful life](https://asc.understandingaccounting.org/glossary/u/#useful-life "The period over which an asset is expected to contribute directly or indirectly to future cash flows.") to the reporting entity. An intangible asset with a finite useful life shall be amortized; an intangible asset with an indefinite useful life shall not be amortized. ##### [350-30-35-2](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:a245133c05d9f58b6c10018a5d35d50696439ece8b81935aa0b519e99b5c1831 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The useful life of an intangible asset to an entity is the period over which the asset is expected to contribute directly or indirectly to the future cash flows of that entity. The useful life is not the period of time that it would take that entity to internally develop an intangible asset that would provide similar benefits. However, a reacquired right recognized as an intangible asset is amortized over the remaining contractual period of the contract in which the right was granted. If an entity subsequently reissues (sells) a reacquired right to a third party, the entity includes the related unamortized asset, if any, in determining the gain or loss on the reissuance. ##### [350-30-35-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:9b15bd470dd2808a286527d6bbe2431bb2ec7a1c26d34277a41c078483cfc768 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The estimate of the useful life of an intangible asset to an entity shall be based on an analysis of all pertinent factors, in particular, all of the following factors with no one factor being more presumptive than the other: 1. a The expected use of the asset by the entity. 2. b The expected useful life of another asset or a group of assets to which the useful life of the intangible asset may relate. 3. c Any legal, regulatory, or contractual provisions that may limit the useful life. The cash flows and useful lives of [intangible assets](https://asc.understandingaccounting.org/glossary/i/#intangible-assets "Assets (not including financial assets) that lack physical substance. (The term intangible assets is used to refer to intangible assets other than goodwill.)") that are based on legal rights are constrained by the duration of those legal rights. Thus, the useful lives of such intangible assets cannot extend beyond the length of their legal rights and may be shorter. 4. d The entity's own historical experience in renewing or extending similar arrangements, consistent with the intended use of the asset by the entity, regardless of whether those arrangements have explicit renewal or extension provisions. In the absence of that experience, the entity shall consider the assumptions that market participants would use about renewal or extension consistent with the highest and best use of the asset by market participants, adjusted for entity-specific factors in this paragraph. 5. e The effects of obsolescence, demand, competition, and other economic factors (such as the stability of the industry, known technological advances, legislative action that results in an uncertain or changing regulatory environment, and expected changes in distribution channels) 6. f The level of maintenance expenditures required to obtain the expected future cash flows from the asset (for example, a material level of required maintenance in relation to the carrying amount of the asset may suggest a very limited useful life). As in determining the useful life of depreciable tangible assets, regular maintenance may be assumed but enhancements may not. Further, if an income approach is used to measure the fair value of an intangible asset, in determining the useful life of the intangible asset for amortization purposes, an entity shall consider the period of expected cash flows used to measure the fair value of the intangible asset adjusted as appropriate for the entity-specific factors in this paragraph. ##### [350-30-35-4](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:15dbad48bc3eddb1b3ebf7fd248e42fcebf8cfde90a42c0975c47ea0116d60e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If no legal, regulatory, contractual, competitive, economic, or other factors limit the useful life of an intangible asset to the reporting entity, the useful life of the asset shall be considered to be indefinite. The term _indefinite_ does not mean the same as infinite or indeterminate. The useful life of an intangible asset is indefinite if that life extends beyond the foreseeable horizon—that is, there is no foreseeable limit on the period of time over which it is expected to contribute to the cash flows of the reporting entity. Such intangible assets might be airport route authorities, certain trademarks, and taxicab medallions. ##### [350-30-35-5](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:d1e6e9ac28d6dc8747b6b78bc03f2307bb9e473f3fbe6bc1cc5e0fd9e0b7f3ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples 1 through 9B (see paragraphs [350-30-55-2 through 55-28F](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-2)) illustrate different intangible assets and how they should be accounted for in accordance with this Subtopic, including determining whether the useful life of an intangible asset is indefinite. ##### [350-30-35-5A](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-5A) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:ce8621ad850367addec867eab6f18e250400593130cebe1e330fdecc72633a03 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance addresses the application of paragraphs [350-30-35-1 through 35-4](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-1) to a [defensive intangible asset](https://asc.understandingaccounting.org/glossary/d/#defensive-intangible-asset "An acquired intangible asset in a situation in which an entity does not intend to actively use the asset but intends to hold (lock up) the asset to prevent others from obtaining access to the asset.") other than an intangible asset that is used in research and development activities. A defensive intangible asset shall be assigned a useful life that reflects the entity's consumption of the expected benefits related to that asset. The benefit a reporting entity receives from holding a defensive intangible asset is the direct and indirect cash flows resulting from the entity preventing others from realizing any value from the intangible asset (defensively or otherwise). An entity shall determine a defensive intangible asset's useful life, that is, the period over which an entity consumes the expected benefits of the asset, by estimating the period over which the defensive intangible asset will diminish in fair value. The period over which a defensive intangible asset diminishes in fair value is a proxy for the period over which the reporting entity expects a defensive intangible asset to contribute directly or indirectly to the future cash flows of the entity. ##### [350-30-35-5B](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-5B) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:d75cb81aeec246fb8948fec79da704575bdd3a8dfa95b8a92c93cbf9530bb4e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. It would be rare for a defensive intangible asset to have an indefinite life because the fair value of the defensive intangible asset will generally diminish over time as a result of a lack of market exposure or as a result of competitive or other factors. Additionally, if an acquired intangible asset meets the definition of a defensive intangible asset, it shall not be considered immediately abandoned. #### Intangible Assets Subject to Amortization ##### [350-30-35-6](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:53e83baebdd71a5a3e09fe0f49f59a2f15d059936f62190cd2ecd1a41afcb1c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A recognized intangible asset shall be amortized over its useful life to the reporting entity unless that life is determined to be indefinite. If an intangible asset has a finite useful life, but the precise length of that life is not known, that intangible asset shall be amortized over the best estimate of its useful life. The method of amortization shall reflect the pattern in which the economic benefits of the intangible asset are consumed or otherwise used up. If that pattern cannot be reliably determined, a straight-line amortization method shall be used. ##### [350-30-35-7](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:f7c460d4a0aa66fe64c09da0315497811735a7281faa91f86992f0430d4538fa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An intangible asset shall not be written down or off in the period of acquisition unless it becomes impaired during that period. However, paragraph [730-10-25-2(c)](https://asc.understandingaccounting.org/asc/730/10/#730-10-25-2) requires amounts assigned to intangible assets acquired in a transaction other than a business combination or an [acquisition by a not-for-profit entity](https://asc.understandingaccounting.org/glossary/a/#acquisition-by-a-not-for-profit-entity "A transaction or other event in which a not-for-profit acquirer obtains control of one or more nonprofit activities or businesses and initially recognizes their assets and liabilities in the acquirer's financial statements. When applicable guidance in Topic 805 is applied by a not-for-profit entity, the term business combination has the same meaning as this term has for a for-profit entity. Likewise, a reference to business combinations in guidance that links to Topic 805 has the same meaning as a reference to acquisitions by not-for-profit entities.")or recognized by a [joint venture](https://asc.understandingaccounting.org/glossary/j/#joint-venture "An entity owned and operated by a small group of businesses (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a joint venture frequently is to share risks and rewards in developing a new market, product, or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a joint venture. The ownership of a joint venture seldom changes, and its equity interests usually are not traded publicly. A minority public ownership, however, does not preclude an entity from being a joint venture. As distinguished from a corporate joint venture, a joint venture is not limited to corporate entities.") upon formation that are to be used in a particular research and development project and that have no alternative future use to be charged to expense at the acquisition date. ##### [350-30-35-8](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:13419262faafa8872313e0d850e52b0d951eb6d7502a771a923f7cd400c75da1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amount of an intangible asset to be amortized shall be the amount initially assigned to that asset less any [residual value](https://asc.understandingaccounting.org/glossary/r/#residual-value "The estimated fair value of an intangible asset at the end of its useful life to an entity, less any disposal costs."). The residual value of an intangible asset shall be assumed to be zero unless at the end of its useful life to the entity the asset is expected to continue to have a useful life to another entity and either of the following conditions is met: 1. a The reporting entity has a commitment from a third party to purchase the asset at the end of its useful life. 2. b The residual value can be determined by reference to an exchange transaction in an existing market for that asset and that market is expected to exist at the end of the asset's useful life. ##### [350-30-35-9](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:f5f93a876d884134a24ee0ba5efc31203acd1fa2ce18c482727ac2c1c11f5834 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall evaluate the remaining useful life of an intangible asset that is being amortized each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. If the estimate of an intangible asset's remaining useful life is changed, the remaining carrying amount of the intangible asset shall be amortized prospectively over that revised remaining useful life. ##### [350-30-35-10](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:7d907ba0b67748ddef124407142859b16589e73bdd726088b5b21f63069985a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An intangible asset that initially is deemed to have a finite useful life shall cease being amortized if it is subsequently determined to have an indefinite useful life, for example, due to a change in legal requirements. If an intangible asset that is being amortized is subsequently determined to have an indefinite useful life, the asset shall be tested for impairment in accordance with paragraphs [350-30-35-18 through 35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18) . ##### [350-30-35-11](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:581d6ff52109389325bdbbf1e7f50f97035a85eafe5a1362c1573a9191f1dfc1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any resulting impairment loss would be due to a change in accounting estimate and thus, consistent with Topic 250, shall be recognized as a change in estimate, not as a change in accounting principle. Therefore, that loss shall be presented in the income statement in the same manner as other impairment losses. ##### [350-30-35-12](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:89bd926df828c870fc1a626e34eac48f19838e0f7ae8f21c3599b3ea0522288b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. That intangible asset shall no longer be amortized and shall be accounted for in the same manner as other intangible assets that are not subject to amortization. ##### [350-30-35-13](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:c678ca456c6191e03330a5932bac577ff63f862acaca32ab273e67633796e39b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an intangible asset's useful life is no longer considered to be indefinite, such as when unanticipated competition enters the market, the intangible asset must be amortized over the remaining period that it is expected to contribute to cash flows. #### Recognition and Measurement of an Impairment Loss ##### [350-30-35-14](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:7c3ad6a2804be7fa128bb40e9f387a9f052fdcc566da0a4cb1f80e1c957a52db Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An intangible asset that is subject to amortization shall be reviewed for impairment in accordance with the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10 by applying the recognition and measurement provisions in paragraphs [360-10-35-17 through 35-35](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-17) . In accordance with the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10, an impairment loss shall be recognized if the carrying amount of an intangible asset is not recoverable and its carrying amount exceeds its fair value. After an impairment loss is recognized, the adjusted carrying amount of the intangible asset shall be its new accounting basis. Subsequent reversal of a previously recognized impairment loss is prohibited. ##### [350-30-35-15](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:47eeb9815c33008f27e2372deda8e8c67d9d3addde5e604b952b60031137ddd4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an intangible asset is determined to have an indefinite useful life, it shall not be amortized until its useful life is determined to be no longer indefinite. ##### [350-30-35-16](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-16) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:c07d401102f169d89844450af873527665ddac6fab52446d989084cb109dc767 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall evaluate the remaining useful life of an intangible asset that is not being amortized each reporting period to determine whether events and circumstances continue to support an indefinite useful life. ##### [350-30-35-17](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-17) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:4fe998c1a0e65db462a7a310a830ba31cb6fb3b3b7bc873c84ffc2aa629a16f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an intangible asset that is not being amortized is subsequently determined to have a finite useful life, the asset shall be tested for impairment in accordance with paragraphs [350-30-35-18 through 35-19](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18) . That intangible asset shall then be amortized prospectively over its estimated remaining useful life and accounted for in the same manner as other intangible assets that are subject to amortization. ##### [350-30-35-17A](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-17A) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:9092183dd38c7c2abc00272ce059c06caad5fe0a576ab1c4fa6cce9d1bd786d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Intangible assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are used in research and development activities (regardless of whether they have an alternative future use) shall be considered indefinite lived until the completion or abandonment of the associated research and development efforts. During the period that those assets are considered indefinite lived, they shall not be amortized but shall be tested for impairment in accordance with paragraphs [350-30-35-18 through 35-19](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18) . Once the research and development efforts are completed or abandoned, the entity shall determine the useful life of the assets based on the guidance in this Section. Consistent with the guidance in paragraph [360-10-35-49](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-49), intangible assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that have been temporarily idled shall not be accounted for as if abandoned. ##### [350-30-35-18](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:8c33505eb3e536db59d5d6f3bafbdc50a43a77e62246ea2df0540cbd2cdf5834 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An intangible asset that is not subject to amortization shall be tested for impairment annually and more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. ##### [350-30-35-18A](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18A) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:96002881383f89f97d306c8551b14e810f6900d1077beaa975624d32bfb72eed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity may first perform a qualitative assessment, as described in this paragraph and paragraphs [350-30-35-18B through 35-18F](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18B) , to determine whether it is necessary to perform the quantitative impairment test as described in paragraph [350-30-35-19](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-19). An entity has an unconditional option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to performing the quantitative impairment test as described in paragraph 350-30-35-19. An entity may resume performing the qualitative assessment in any subsequent period. If an entity elects to perform a qualitative assessment, it first shall assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that an indefinite-lived intangible asset is impaired. ##### [350-30-35-18B](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18B) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:f2989105b8b9e14b2618fe9a8d5d55bbde77ac6cde13c7c6e9f34b259d949161 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In assessing whether it is more likely than not that an indefinite-lived intangible asset is impaired, an entity shall assess all relevant events and circumstances that could affect the significant inputs used to determine the fair value of the indefinite-lived intangible asset. Examples of such events and circumstances include the following: 1. a Cost factors such as increases in raw materials, labor, or other costs that have a negative effect on future expected earnings and cash flows that could affect significant inputs used to determine the fair value of the indefinite-lived intangible asset 2. b Financial performance such as negative or declining cash flows or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods that could affect significant inputs used to determine the fair value of the indefinite-lived intangible asset 3. c Legal, regulatory, contractual, political, business, or other factors, including asset-specific factors that could affect significant inputs used to determine the fair value of the indefinite-lived intangible asset 4. d Other relevant entity-specific events such as changes in management, key personnel, strategy, or customers; contemplation of bankruptcy; or litigation that could affect significant inputs used to determine the fair value of the indefinite-lived intangible asset 5. e Industry and market considerations such as a deterioration in the environment in which an entity operates, an increased competitive environment, a decline in market-dependent multiples or metrics (in both absolute terms and relative to peers), or a change in the market for an entity's products or services due to the effects of obsolescence, demand, competition, or other economic factors (such as the stability of the industry, known technological advances, legislative action that results in an uncertain or changing business environment, and expected changes in distribution channels) that could affect significant inputs used to determine the fair value of the indefinite-lived intangible asset 6. f Macroeconomic conditions such as deterioration in general economic conditions, limitations on accessing capital, fluctuations in foreign exchange rates, or other developments in equity and credit markets that could affect significant inputs used to determine the fair value of the indefinite-lived intangible asset. ##### [350-30-35-18C](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18C) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:471471e9e69bd57622632f4f56f1604cca541d6f5ab617f1996bf80ad043a87b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The examples included in the preceding paragraph are not all-inclusive, and an entity shall consider other relevant events and circumstances that could affect the significant inputs used to determine the fair value of the indefinite-lived intangible asset. An entity shall consider the extent to which each of the adverse events and circumstances identified could affect the significant inputs used to determine the fair value of an indefinite-lived intangible asset. An entity also shall consider the following to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired: 1. a Positive and mitigating events and circumstances that could affect the significant inputs used to determine the fair value of the indefinite-lived intangible asset 2. b If an entity has made a recent fair value calculation for an indefinite-lived intangible asset, the difference between that fair value and the then carrying amount 3. c Whether there have been any changes to the carrying amount of the indefinite-lived intangible asset. ##### [350-30-35-18D](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18D) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:a7e796159a1151aecd5a8e565cbff01afe65b73375e3ba9b1be03cc03a1b7c3c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall evaluate, on the basis of the weight of the evidence, the significance of all identified events and circumstances that could affect the significant inputs used to determine the fair value of the indefinite-lived intangible asset for determining whether it is more likely than not that the indefinite-lived intangible asset is impaired. None of the individual examples of events and circumstances included in paragraph [350-30-35-18B(a) through (f)](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18B) are intended to represent standalone events and circumstances that necessarily require an entity to calculate the fair value of an intangible asset. Also, the existence of positive and mitigating events and circumstances is not intended to represent a rebuttable presumption that an entity should not perform the quantitative impairment test as described in paragraph [350-30-35-19](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-19). ##### [350-30-35-18E](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18E) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:5733044c8b6a7ed10e8dc518ffeef772505c123c799d97de61933e2179184970 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If after assessing the totality of events and circumstances and their potential effect on significant inputs to the fair value determination an entity determines that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity need not calculate the fair value of the intangible asset and perform the quantitative impairment test in accordance with paragraph [350-30-35-19](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-19). ##### [350-30-35-18F](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18F) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:9c3c1962c43b6ea5f116f14590980e9b8e77327191ddb2c054450499856ca200 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If after assessing the totality of events and circumstances and their potential effect on significant inputs to the fair value determination an entity determines that it is more likely than not that the indefinite-lived intangible asset is impaired, then the entity shall calculate the fair value of the intangible asset and perform the quantitative impairment test in accordance with the following paragraph. ##### [350-30-35-19](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-19) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:eb3c9b3adcc8c5775baf4a2d7a962f2e2f332cb2791e0a64ddb0a7ce8f535c68 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The quantitative impairment test for an indefinite-lived intangible asset shall consist of a comparison of the fair value of the asset with its carrying amount. If the carrying amount of an intangible asset exceeds its fair value, an entity shall recognize an impairment loss in an amount equal to that excess. After an impairment loss is recognized, the adjusted carrying amount of the intangible asset shall be its new accounting basis. ##### [350-30-35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-20) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:e4a42fbdaa39570e50f973b93c598c115af15a2bce1b34cefad8dc58cd506fab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Subsequent reversal of a previously recognized impairment loss is prohibited. #### Unit of Accounting for Purposes of Testing for Impairment of Intangible Assets Not Subject to Amortization ##### [350-30-35-21](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-21) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:466fb46aae54ecf60b9a970ae65f07a4390efaf889e800c80b207b34f61ae106 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Separately recorded indefinite-lived intangible assets, whether acquired or internally developed, shall be combined into a single unit of accounting for purposes of testing impairment if they are operated as a single asset and, as such, are essentially inseparable from one another. ##### [350-30-35-22](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-22) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:d080a67220dd809cebc935a5f4e686efc40dbc7639886d90020b195f1ab0e5d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Determining whether several indefinite-lived intangible assets are essentially inseparable is a matter of judgment that depends on the relevant facts and circumstances. The indicators in paragraph [350-30-35-23](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-23) shall be considered in making that determination. None of the indicators shall be considered presumptive or determinative. ##### [350-30-35-23](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-23) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:e26b086a032d29117750dd7c7e2386da420d1cbe1a2b68951416e6b8352e64c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Indicators that two or more indefinite-lived intangible assets shall be combined as a single unit of accounting for impairment testing purposes are as follows: 1. a The intangible assets were purchased in order to construct or enhance a single asset (that is, they will be used together). 2. b Had the intangible assets been acquired in the same acquisition they would have been recorded as one asset. 3. c The intangible assets as a group represent the highest and best use of the assets (for example, they yield the highest price if sold as a group). This may be indicated if it is unlikely that a substantial portion of the assets would be sold separately or the sale of a substantial portion of the intangible assets individually would result in a significant reduction in the fair value of the remaining assets as a group. 4. d The marketing or branding strategy provides evidence that the intangible assets are complementary, as that term is used in paragraph [805-20-55-18](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-18). ##### [350-30-35-24](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-24) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:7fcf6fd42004ccbe585f2336b400abbf04bc654db7fa60bfb94f28595ea27bfd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Indicators that two or more indefinite-lived intangible assets shall not be combined as a single unit of accounting for impairment testing purposes are as follows: 1. a Each intangible asset generates cash flows independent of any other intangible asset (as would be the case for an intangible asset licensed to another entity for its exclusive use). 2. b If sold, each intangible asset would likely be sold separately. A past practice of selling similar assets separately is evidence indicating that combining assets as a single unit of accounting may not be appropriate. 3. c The entity has adopted or is considering a plan to dispose of one or more intangible assets separately. 4. d The intangible assets are used exclusively by different asset groups (see the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10). 5. e The economic or other factors that might limit the useful economic life of one of the intangible assets would not similarly limit the useful economic lives of other intangible assets combined in the unit of accounting. ##### [350-30-35-25](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-25) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:003640c36219bdb62bd54a32f2b8186b3b46dc2bea0e5243c82a88b2868fc7b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2010-07](https://asc.understandingaccounting.org/updates/asu-2010-07/). ##### [350-30-35-26](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-26) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:225e0a04b70c1a10e5231b0c7a2bd24d6eeb3918e4edb072fce513e66f779f87 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of the following shall be included in the determination of the unit of accounting used to test indefinite-lived intangible assets for impairment: 1. a The unit of accounting shall include only indefinite-lived intangible assets—those assets cannot be tested in combination with [goodwill](https://asc.understandingaccounting.org/glossary/g/#goodwill "An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29.") or with a finite-lived asset. 2. b The unit of accounting cannot represent a group of indefinite-lived intangible assets that collectively constitute a business or a [nonprofit activity](https://asc.understandingaccounting.org/glossary/n/#nonprofit-activity "An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing benefits, other than goods or services at a profit or profit equivalent, as a fulfillment of an entity's purpose or mission (for example, goods or services to beneficiaries, customers, or members). As with a not-for-profit entity, a nonprofit activity possesses characteristics that distinguish it from a business or a for-profit business entity."). 3. c A unit of accounting may include indefinite-lived intangible assets recorded in the separate financial statements of consolidated subsidiaries. As a result, an impairment loss recognized in the consolidated financial statements may differ from the sum of the impairment losses (if any) recognized in the separate financial statements of those subsidiaries. 4. d [Subparagraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-30-35-27](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-27) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:975b9339acf9f367ea902950d589e4453288df3ac43a77b059843658535a7003 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If, based on a change in the way in which intangible assets are used, an entity combines as a unit of accounting for impairment testing purposes indefinite-lived intangible assets that were previously tested for impairment separately, those intangible assets shall be separately tested for impairment in accordance with paragraphs [350-30-35-18 through 35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18) prior to being combined as a unit of accounting. ##### [350-30-35-28](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-28) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:728abe563e07943cb0757270238a98ec71ce344ff3bceccd158d90dd6c908a1a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples 10 through 12 (see paragraphs [350-30-55-29 through 55-38](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-29) ) illustrate the determination of the unit of accounting to use in impairment testing.