Indefinite-Lived Intangible Asset

Definition

An intangible asset for which there is no foreseeable limit to the period over which it is expected to generate net cash inflows for the entity. Under IAS 38 and ASC 350, indefinite-lived intangible assets are not amortised but must be tested for impairment at least annually and whenever there is an indication of impairment. Common examples include certain trademarks and brand names, broadcasting licences with automatic renewal, and perpetual franchise rights. The useful life must be reviewed each period to determine whether events and circumstances continue to support the indefinite classification.