The Fast Close Toolkit by Christine H. Doxey

Author:Christine H. Doxey [Doxey, Christine H.]
Language: eng
Format: epub, pdf
ISBN: 9781119554448
Publisher: Wiley
Published: 2019-12-24T00:00:00+00:00

Copyrights

Copyrights grant a business sole authority to reproduce and sell a software, book, magazine, journal, and so on.

Patents

Patents grant a manufacturing and research company control over the use and sale of a specific design in manufacturing process, and so on.

Amortization of Intangible Assets

Amortization is the process of expensing out intangible assets over their useful life. It is in effect the depreciation of intangible assets.

Some intangible assets have indefinite or unlimited useful life, such as goodwill. Such assets are not amortized. Others have a definite useful life and are amortized over their useful life. Most of intangible assets are amortized using the straight-line method. Useful life is the shorter of legal life and economic life.

In accounting, amortization refers to expensing the acquisition cost minus the residual value of intangible assets (often intellectual property such as patents and trademarks or copyrights) in a systematic manner over their estimated useful economic lives so as to reflect their consumption, expiry, obsolescence, or other decline in value as a result of use or the passage of time.

Amortization is recorded in the financial statements of an entity as a reduction in the carrying value of the intangible asset in the balance sheet and as an expense in the income statement.

While theoretically amortization is used to account for the decreasing value of an intangible asset over its useful life, in practice many companies will “amortize” what would otherwise be onetime expenses by listing them as a capital expense on the cash flow statement and paying off the cost through amortization, thereby improving the company's net income in the fiscal year or quarter of the expense.

There are considerable difficulties in assessing the increase in value of any particular asset. This is principally because of the variety of interpretations that can be attached to the concept of value itself, as well as the various instruments and methods used in the valuation process.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.