Amortization of intangible assets

Amortization (or amortisation) is the process of the systematic allocation of intangible asset's cost to its useful life. The current financial period (e.g. an year) Amortization expenses are included in operating expenses in income statement and sum of all previous and current financial periods' amortization expenses (or accumulated amortization expenses) are subtracted from relative intangible assets cost in balance sheet

Double entry for amortization expenses

    Amortization expenses                                                       DR

                   Accumulated amortization expenses                                CR