Amortization refers to the process of allocating the cost of an intangible asset over the asset’s useful life. Only the intangible assets which are assumed to have finite useful lives are amortized over their useful lives, along the lines by…

Discretion regarding whether to expense or capitalize expenditures can impede comparability across companies. For example, a company that expenses its expenditure instead of capitalizing it will have lower profitability in the first year but higher profitability in subsequent years, indicating…

There are three primary ways intangible assets may be acquired: purchased in situations other than business combinations, developed internally, and acquired in business combinations. The accounting treatment accorded to an asset depends on which of these methods is used in…