5270 Amortization of Intangibles

Amortization is the systematic spreading of the value of Intangible Assets other than Goodwill over the asset’s estimated useful life. Generally, agencies use the straight-line method to amortize intangible assets. The agency reports the amount amortized during the reporting period as an operating expense/reconciling item. Typically, the agency reports amortization as Funds Not Applied since it is not a cash expenditure.