How Much Does Intangible Asset Amortization Management Cost in Hong Kong? (2026)
Frequently Asked Questions
The amortization period depends on the economic useful life of the intangible asset. Patents typically follow statutory protection periods; goodwill is usually 10 years; software 3-5 years; brand rights depend on business expectations. Hong Kong accounting standards require assessment of reasonable useful life. If uncertain, conservative estimates may be used. The period setting requires approval from auditors and tax authorities to avoid future disputes.
Under Hong Kong accounting standards, goodwill is no longer amortized but requires annual impairment testing. Testing involves evaluating the merged entity's operating cash flows and comparing book value with recoverable amount. If impaired, books must be adjusted and disclosed in financial statements. This complex valuation process often requires external experts and involves higher costs.