Amortisation is the process of spreading out the cost of an intangible asset over a designated period of its useful life. Intangible assets, such as patents, trademarks, or software licenses, often have a finite useful life during which the asset contributes to the operation or financial success of a business. By systematically expensing a portion of the intangible asset over this period, policymakers can match the expense with the revenue it helps to generate, adhering to the matching principle in accounting.\n\nFor instance, if a company owns a patent with a useful life of 10 years, the cost of the patent will be divided equally over those 10 years unless another amortisation method applies. This allocation helps in accurate financial reporting and ensures the expenses corresponding to the asset are accounted for periodically.\n\nAmortisation is different from depreciation, which applies to tangible assets, and from depletion, which applies to natural resources.