Which assets are subject to an impairment test?

The correct answer indicates that both intangibles and fixed assets held and used are subject to an impairment test. Assets are considered impaired when their carrying amount exceeds their recoverable amount, meaning the amount that can be recovered through use or sale.

Fixed assets, such as property, plant, and equipment, must be tested for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. This can include factors like a significant decline in market value, changes in the way an asset is used, or negative economic trends.

Intangible assets, particularly those with a definite life, are similarly reviewed for impairment. Intangibles must be assessed for impairment whenever it is more likely than not that their fair value is less than their carrying amount.

This comprehensive approach ensures that both tangible and intangible long-term assets reflect their actual value on the balance sheet, providing stakeholders with relevant and reliable financial information.

The other choices neglect one or both of these asset categories or limit the scope of impairment testing, which does not align with accounting standards that mandate a broader perspective on asset impairment.