Indefinite

Examples of Indefinite in the following topics:

• Indefinite-Life Impairment

  • Because Indefinite-life tangibles continue to generate cash they can't be amortized; they must be evaluated for impairment yearly.
  • A software company has a trademark valued at $10 million with an indefinite useful life.
  • Some examples of indefinite-life intangibles are goodwill, trademarks, and perpetual franchises.
  • Indefinite-life tangibles are not amortized because there is no foreseeable limit to the cash flows generated by those intangible assets.
  • Instead of amortization, indefinite-life assets are evaluated for impairment yearly.

• Analyzing Intangible Assets

  • Intangible assets have either an identifiable or indefinite useful life.
  • Intangible assets with indefinite useful lives are reassessed each year for impairment.
  • Trademarks and goodwill are examples of intangible assets with indefinite useful lives.

• Limited-Life Impairment

  • They are classified into categories: either purchased vs. internally created intangible assets; and limited-life or indefinite-life intangible assets.
  • Intangible assets can have either a limited or an indefinite useful life.
  • Only intangible assets with an indefinite life are reassessed each year for impairment.

• Characteristics of Intangible Assets

  • Intangible assets have a useful life that is either identifiable or indefinite.
  • Intangible assets with indefinite useful lives are assessed each year for impairment.
  • Indefinite-Life Intangibles.

• Impairment Measurement

  • Certain assets with indefinite lives require an annual test for impairment.

• Amortization of Intangible Assets

  • Intangible assets have a useful life that is either identifiable or indefinite.
  • Goodwill is an example of an intangible asset that has an indefinite useful life, and is therefore tested for impairment on an annual basis as opposed to being amortized on a straight line basis.

• Reporting Intangibles

  • The accounting for intangible assets depends on whether the intangible has a limited or an indefinite life.

• Differences Between GAAP and IFRS and Implications of Potential Convergence

  • For example, in 2006 senior partners at PricewaterhouseCoopers (PwC) called for convergence to be "shelved indefinitely" in a draft paper, calling for the IASB to focus instead on improving its own set of standards.

• Trademarks

  • Trademarks are not amortized since each is considered to have an indefinite life, meaning a perception exists that a trademark can retain its value forever.

• Characteristics of Bonds

  • Another difference is that bonds usually have a defined term, or maturity, after which the bond is redeemed, whereas stocks may be outstanding indefinitely.