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Chapter 4 — Subsequent Accounting for Intangible Assets

4.7 Determining the Carrying Amount of an Intangible Asset When That Asset Is Removed From Its Unit of Account

4.7 Determining the Carrying Amount of an Intangible Asset When That Asset Is Removed From Its Unit of Account

ASC 350-30-35-21 states that “[s]eparately 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.” An indefinite-lived intangible asset may need to be removed from a single unit of account if that intangible asset is sold separately from the unit of account, the unit of account is reconsidered (such as in connection with a larger reorganization of the entity), or the entity concludes that the indefinite-lived intangible asset is now finite-lived.