[242126]

I am reviewing the FAR Notes under the IFRS section. In regards to intangible assets it mentions there are two options to value – one being cost model and the other revaluation model. It states in both cost is less accumulated depreciation. In my course material (CPAexcel), there is no mention of depreciation associated with the value of intangible assets. My understanding is intangible assets are amortized. Does anyone have insight on where depreciation come in with the value of intangible assets?

[stoleway]

Depreciation and amortization are used interchangeably but in most cases depreciation is used for tangible assets eg.PPE and amortization is used for intangibles like franchise, copyright, trademarks etc.

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[Author]

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