BC119 As part of the first phase of its Business Combinations project, the Board concluded that:
(a) an intangible asset should be regarded as having an indefinite useful life when, based on an analysis of all relevant factors (eg legal, regulatory, contractual, competitive and economic), there is no foreseeable limit on the period over which the asset is expected to generate net cash inflows for the entity; and
(b) an indefinite‑lived intangible should not be amortised, but should be tested regularly for impairment.
An outline of the Board’s deliberations on each of these issues is provided in the Basis for Conclusions on IAS 38 Intangible Assets.
BC120 Having reached these conclusions, the Board then considered the form that the impairment test for indefinite‑lived intangibles should take. The Board concluded that:
(a) an indefinite‑lived intangible should be tested for impairment annually, or more frequently if there is any indication that it may be impaired; and
(b) the rec
…