Amortization - Software & Licenses
Code: 5263
👁 Views: 91
Account Information
| Financial Statement | Income Statement |
| Normal Balance | Debit |
Definition
Amortization expense for computer software, licenses, and prepaid usage rights (e.g., ERP system, accounting software, Windows licenses).
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 16 / IAS 38
PPE / Intangibles
US GAAP
ASC 360 / ASC 350
PPE / Intangibles
❓ Frequently Asked Questions
Q: How are software and licenses amortized?
A: Using the straight-line method over the expected useful life (usually 3-5 years for software, over the license term).