Intangibles refers to a set of assets that are non physical in nature. Examples of these types of assets include patents, rights, copyrights, goodwill, an financing fees for a loan. These types of assets are located in the bottom section of the asset side of the balance sheet and amortization is used to allocate the actual cost over time to the income statement.
Amortization is similar to depreciation whereby an asset’s cost is allocated to the expense over time. There are several differences with amortization. Amortization is used with intangible assets and the method is almost […]