Fatfree Foods purchased a licence with an indefinite life on Sept. 1 of the current year and they have a year end of Dec. 31. Does this asset under IFRS need to be tested for impairment in the current year?

Fatfree Foods purchased a licence with an indefinite life on Sept. 1 of the current year and they have a year end of Dec. 31. Does this asset under IFRS need to be tested for impairment in the current year?

Yes, an intangible asset with an indefinite life (or not ready for use) that was initially recognized during the current annual period, must be tested for impairment before the end of the current annual period.

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