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  • For intangible assets, what valuation methods are allowed under IFRS?

    IFRS allows a company to use the cost model or the valuation method for valuing intangible assets. U.S. GAAP only allows the cost model.

  • What does it mean to amortize an intangible asset?

    Amortization of intangible assets is the same thing as depreciating physical (tangible) assets. If the company has finite life, then the company would amortize the intangible asset over the estimated useful life. For example, if the company acquires a trademark that has a useful life of 10 years, then after 10 years, the net book […]

  • How to calculate amortization expense?

    Since finite life intangible assets are capitalized onto the balance sheet at the acquisition/purchase price, that amount represents the capitalized cost base to amortize. Assuming the straight-line method is used, the company divides the capitalized cost by the estimated useful life, and that gives you the amortization expense per year to recognize in the financial […]