writeamortisatie
Writeamortisatie is the accounting practice of systematically recognizing the cost of intangible assets over their estimated useful life. It reduces the carrying amount of the asset on the balance sheet and is recognized as an expense on the income statement. The term applies to intangible assets with finite lives, such as software, licenses, patents, and customer relationships. It is distinct from depreciation, which applies to tangible assets, and from impairment, which can reduce value outside scheduled amortization.
Amortization is most commonly calculated on a straight-line basis, by dividing the asset’s cost (less any residual
Journal entries typically record: Dr Amortization expense; Cr Accumulated amortization. Example: a software license costing 50,000
International Financial Reporting Standards and U.S. GAAP require finite-lived intangible assets to be amortized and periodically