## Presentation in Financial Statements
### Balance Sheet (Non-Current Assets — Intangible Assets)
Present as: Cost – Accumulated Amortization = Net Carrying Amount
| Asset | Opening Cost | Amortization (Year) | Closing CA |
|---|---|---|---|
| Goodwill | xx | xx | xx |
| Patent | xx | xx | xx |
| Franchise | xx | xx | xx |
### P&L Extract — Typical Items
| Item | Treatment |
|---|---|
| Amortization of intangibles | Expense |
| Annual fee based on revenue (e.g., franchise fee) | Expense when incurred |
| Impairment loss | Expense |
| Gain / Loss on disposal | Below-the-line or other income/expense |
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## Policy Notes
- Annual fees based on net revenue (e.g., franchise royalties) → always expense when incurred; cannot be capitalised.
- Amortization in year of acquisition — follow stated company policy (e.g., full year's amortization in year of purchase).
- Prior period errors in amortization → AS 5 treatment: recognised as prior period item in current year P&L.