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Unformatted text preview: ent, an intangible asset may not be amortized
over a period of more than 5 years. The NCA recommends that, goodwill be amortized over 5
years; the period should never exceed 10 years.
The Civil Code requires that amortization of intangible assets and deferred charges occur
over the expected period of benefit, which should not exceed 5 years.
The NCA has recommended a specific amortization policy; it suggests an alternative of
amortization over the expected period of benefit.
Formation expenses are amortized over no more than 5 years.
Intangible assets are amortized over their useful lives. The rules that apply to the depreciation
of tangible fixed assets also apply to the amortization of intangible fixed assets (they must be
written off over a period not exceeding their expected useful life), except that research and
development costs and goodwill should normally be amortized over a period of 5 years. In
exceptional circumstances, amortization of these assets is spread over a longer period; the
reason for the use of an extended amortization period should be gi...
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This note was uploaded on 05/02/2013 for the course ECONOMIC economics taught by Professor Economics during the Fall '13 term at Elmont Memorial High School.
- Fall '13
- The Land