Amortisation
In this lesson, you'll learn how to account for amortisation of intangible assets under IFRS standards. Amortisation is the systematic allocation of an intangible asset's depreciable amount over its useful life—essentially the same principle as depreciation, but applied to intangibles rather than property, plant and
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In this lesson
- 0:00 Amortisation of intangible assets explained
- 0:27 Amortisation methods and useful life determination
- 1:04 Journal entries and accumulated amortisation accounting
- 1:54 Annual review and special cases for intangibles
- 2:48 Worked example: calculating amortisation charge
About this lesson
equipment. You'll discover when amortisation begins (when the asset is available for use), which methods to use (typically straight-line, though reducing balance is permitted), and how to record the journal entries that reflect the dual effect of the charge. The lesson also covers key practical points: reviewing amortisation methods and useful lives annually, handling capitalised development expenditure, and understanding why certain intangibles like goodwill are treated differently and subject to impairment testing instead. A worked example demonstrates how to calculate a time-apportioned amortisation charge when an intangible asset becomes commercially exploited partway through the accounting period, ensuring you can apply these principles accurately in exam scenarios and real-world situations.
Duration: 4m
Transcript
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