Terms Beginning With 'a'

Amortization of Intangibles

The accounting technique to split the expenses related to an intangible asset over the useful period of an asset is Amortization of intangibles. The intangible assets could include the intellectual property, patents, goodwill and trademarks owned by the company.

Example: If the utility patent of 5 years has been awarded for a certain product, during those five years, an expense is calculated to adjust the book value of the patent every year.