This excerpt taken from the ABII 8-K filed Nov 8, 2007.
Intangible Assets and Other Non-Current Assets
New Abraxis is required to perform impairment tests related to goodwill under SFAS No. 142, Goodwill and Other Intangible Assets annually, which New Abraxis performs on October 1, and whenever events or changes in circumstances suggest that it is more likely than not that the fair value of the reported units are below their carrying values. New Abraxis completed the annual impairment tests for its $241.4 million of goodwill in the fourth quarter of 2006 and determined that goodwill was not impaired and that no impairment charges were required.
Intangible assets are recorded at acquisition cost and are amortized on a straight-line basis over the period estimated revenues are expected to be derived from such assets (weighted average amortization period of approximately six years). New Abraxis reviews its intangible assets for impairment whenever events or changes in circumstance indicate that the carrying amount of an intangible asset may not recoverable.