The accounting term for spreading the cost of an intangible asset over its useful life is amortization.
Amortization systematically allocates an intangible asset’s depreciable cost to expense over the periods expected to benefit from it. Examples include patents, copyrights, software, licenses, and franchise rights. Under IAS 38, an intangible asset with a finite useful life is amortized once it is available for use.
The method should reflect how the asset’s economic benefits are consumed. If that pattern cannot be determined reliably, straight-line amortization is generally used. An asset with an indefinite useful life is not amortized, but it is tested for impairment instead.
A common mix-up is confusing amortization with depreciation. Depreciation generally applies to tangible property, plant, and equipment, while depletion concerns natural resources such as oil or mineral deposits. Impairment is different again: it records a loss when an asset’s recoverable value falls, rather than allocating its cost routinely.