Amortization

How are amortizations calculated?

Amortizations are generally expensed straight-line meaning with the same amount every year during its lifetime (expected lifetime). In this sense they differ from depreciation who may be calculated accelerated (with accelerated depreciation)

What kind of assets might be amortized?

  • Software
  • Capitalized development costs
  • Patents
  • Acquired customer databases
  • Licenses
  • Organizational restructuring costs
  • Goodwill