Amortization

Owned by Chad
Last updated: Jun 02, 2021

Corresponding Policy: See ‘Accounting for Intangible Assets-Intro’ policy.
Corresponding Forms: N/A
Process: Figuring out the Amortization Policy by Account Code on Intangible Assets
 

Capital Asset
Account Code

Asset Type 

Amortized? (Yes/No)

Amortization Frequency

Amortization Expense Account Code

Accumulated Amortization Account Code

Treatment of First Year Amortiza-
tion (see notes below table)

A8210 - Easements
/Right of Ways

UE

Note 1

Monthly

80711   

A8711   

Note 2

A8221 - Computer Software

US   

Note 1 

Monthly   

80721   

A8721   

Note 2

A8231 - Water Rights

UW   

Note 1   

Monthly  

80731   

A8731   

Note 2

A8241 - Timber Rights

UT

Note 1

Monthly   

80741   

A8741   

Note 2

A8251 - Patents & Copyrights

UP   

Note 1

Monthly   

80751   

A8751   

Note 2

A8261 – Trademarks

UK

Note 1   

Monthly   

80761   

A8761   

Note 2

A8271 - Other Intangible Assets

UO   

Note 1  

Monthly   

80771   

A8771   

Note 2

A8222 - In Development (Computer Software)

US

No 





A8252 - In Development (Patents
/Copyrights)

UP 

No       





A8262 - In Development (Trademarks)

UK

No  





A8272 - In Development (Other Intangibles)

UO

No    





Notes:

  1.  Intangible assets are amortized unless they have an indefinite service life.

  2.  Proportional - Amortization begins in the month the intangible asset is acquired and ready for use (e.g., "substantially complete"), and removed from "In Development" status in Banner Fixed Assets. If the maintenance in Banner Fixed Assets is performed late, "catch-up" amortization would need to be performed back to the month that the property was completed or "substantially completed."  Additional capitalizable costs to completed or "substantially completed" records will be added at the end of the fiscal year, with amortization on the additional capitalizable costs to begin on July 1 of subsequent year.  In Development amounts must be updated in Banner Fixed Assets at least at year-end, but more frequently is desirable.

Amortization pertaining to capital assets of proprietary funds is charged to auxiliary enterprise or service department funds. Amortization pertaining to other funds is charged to the investment-in-plant fund.