Work out amortisation of intangibles instantly with clear inputs, formula shown and shareable results.
Intangible assets with a finite life — patents, licences, customer lists, capitalised development — are amortised on a straight-line basis over that life, usually to a nil residual value. Indefinite-life intangibles such as goodwill are not amortised but tested annually for impairment instead.
Annual amortisation
Charge = (Cost - Residual value) / Useful economic life
Carrying amount
Carrying amount = Cost - Accumulated amortisation
Goodwill and other indefinite-life intangibles under IFRS. They are subject to annual impairment testing instead.
The shorter of its legal protection period and the period over which it is expected to generate economic benefit.