19 January 2015
Amortisation refers to the expensing of intangible capital assets (intellectual property: patents, trademarks, copyrights, etc.) in order to show their decrease in value as a result of use or passage of time. This could be because of consumption, expiration or obsolescence.
Generally accepted accounting principles no longer require that purchased goodwill be amortized.
All non-current intangible assets other than goodwill will need to be depreciated or amortized over their useful life, unless the asset life is determined to be indefinite
CAclubindia
