| amortization of intangible assets (FI-LC) |
The process of reducing the value of intangible assets by spreading the costs over the useful life of the asset.
This can also be achieved by making a value adjustment on the balance sheet key data.
From a consolidation point of view, the amortization of goodwill activated during the first consolidation is relevant.
Typically, the procedures for amortization are governed by external regulatory bodies.
For example, German trade law uses an annual amortization rate of 25% as a default.