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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.

  • How to Calculate Amortization for Intangible Assets:

    Amortization of intangible assets is essentially the same concept as depreciating physical (tangible) assets. If the intangible asset has a finite life (meaning the useful life of the intangible assets has a definitive end) then the company would amortize the intangible asset over the lesser of its estimated useful life (sometimes referred to as its...

  • 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...