Depreciation And Amortization For Intangible Assets

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In accounting the terms depreciation, depletion and amortization often involve the movement of costs from the balance sheet to the income statement in a systematic and logical manner. Amortization Expense is an accounting term used as Account Charged for the Amortization or allocation of Expenses for Prepayments & Intangible Assets. It solely deals with intangible assets and does not concer tangible assets like land property etc. Intangible Assets include trade names, trademarks, franchise licenses, patent, copyrights, government licenses, goodwill and other assets that lack physical substance but provide long-term benefits to the company. Amortization for Intangible Assets is allocated over the useful life or legal life, whichever is…show more content…
Intangible assets include patents, copyrights, software, contracts, trademarks, trade names, franchise licenses, government licenses, goodwill, and other items that lack physical substance but provide longterm benefits to the company. A trademark is a word, phrase, symbol, and/or design that identifies and distinguishes the source of the goods of one party from those of others. A service mark is a word, phrase, symbol, and/or design that identifies and distinguishes the source of a service rather than goods. The term "trademark" is often used to refer to both trademarks and service marks. A patent protects an invention and innovations or improvements thereon by providing the inventor with a set of exclusive rights which prevent others from making, using, offering for sale, or selling the invention without the consent of the inventor. An idea in itself can not be patented. The idea must be materialized into an invention, innovative product, device or process that offers new solutions to a problem in order for the registrant to be able to seek the patent. Patents protect products in the fields of machinery, manufacturing, composition of matter (a combination of chemicals), and processes (methods of manufacturing). Copyrights protect works of authorship and cover: a) works of art (2 or 3 dimensional), b) photos,

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