Account Information

Financial Statement Statement of Financial Position
Normal Balance Credit

Definition

Total accumulated amortization of intangible assets since acquisition date

Common Journal Entries

Record intangible asset amortization

Dr. Amortization Expense
Cr. Accumulated Amortization

Eliminate amortization on asset sale

Dr. Accumulated Amortization
Cr. Intangible Assets

Adjust accumulated amortization

Dr. Amortization Expense
Cr. Accumulated Amortization

Write off asset with full amortization

Dr. Accumulated Amortization
Cr. Intangible Assets

Record intangible asset amortization

Dr. Amortization Expense
Cr. Accumulated Amortization

Eliminate amortization on asset sale

Dr. Accumulated Amortization
Cr. Intangible Assets

Adjust accumulated amortization

Dr. Amortization Expense
Cr. Accumulated Amortization

Write off asset with full amortization

Dr. Accumulated Amortization
Cr. Intangible Assets

📐 IFRS vs US GAAP Accounting Treatment

IFRS IAS 38 Intangible Assets
US GAAP ASC 350 Intangibles - Goodwill and Other

❓ Frequently Asked Questions

Q: What is accumulated amortization?

A: A contra-asset account shown as a deduction from intangible asset cost (patents, software, trademarks, licenses), representing total accumulated amortization.

Q: How are intangible assets amortized?

A: Usually using the straight-line method over the expected useful life (e.g., 5-20 years depending on the asset type).