Intangible Fixed Asset

Lesson Summary-Amortization of Intangible Asset under Cambodia Tax

• -Intangible assets are long term assets that are not tangible fixed assets Class 1,2,3 and 4. For example , Intangible assets included copyrights, franchise, license, trade mark, brand name etc.
• -Amortization Expense is calculated by using  straight line (SL) method.
• -Amortization is based on the useful life if having a specific useful life.
• -Amortization rate is 10% if having no specific useful life.

Example 1

Assume ABC Company got copyrights to print and publish Book A from Country ABC. Copyrights is valued 50,000$ and Company has rights for 5 years.

Required

Calculate tax amortization expense.

Answer

We knew its useful life is 5 years.

Amortization expense per year =50,000/5=$10,000.