Similar to depreciation, amortization is effectively the “spreading” of the initial cost of acquiring intangible assets over the corresponding useful life of the assets. Intangible assets are defined as non-physical assets with useful life assumptions that exceed one year. How to Calculate Amortization of Intangible Assets The Amortization of Intangible Assets is the process in which purchases of non-physical intangibles are incrementally expensed across their appropriate useful life assumptions.Ĭonceptually, the amortization of intangible assets is identical to the depreciation of fixed assets like PP&E, with the non-physical nature of intangible assets being the main distinction. What is Amortization of Intangible Assets?
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |