Something I wasn't fully clear on and did some extra
research for was Depreciation and Amortisation.
My company depreciated property, plant and equipment but amortised
patents, licences and intellectual property.
I did some research and found the concept of the two are similar
however it is depreciation you apply to assets whose useful life is variable
and amortisation is applied to assets where the exact life is fixed and
known. So depreciation is applied to physical
assets prone to wear and tear and amortisation is applied to intangible
assets.
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