Intangible Assets

Amortization allows startups to spread the cost of intangible assets over their useful life. It aligns expenses with revenue and impacts how investors view your profitability.

Impairment occurs when an asset’s market value permanently drops below its book value, requiring a write-down on financial statements to reflect the true recoverable amount.

Goodwill is the premium paid over the fair market value of assets during a business acquisition, representing intangible value like brand reputation, customer lists, and proprietary technology.