Amortisation of a financial asset

[vk79]

hello
I am a little confused with the amortised cost of a financial asset. If for example a company has a patent worth 15 M USD and the useful life is 15 years then the company can amortise 1 M USD every year. Does it work the same way with a financial asset?
Thanks

 

[S2000magician]

Generally, the only financial assets to which amortization is applied are bonds purchased at a premium or discount from par (and designated as held-to-maturity): the premium or discount is amortized over the remaining life of the bond, so that at maturity, the carrying value is par.

 

[vk79]

Thank you

 

[S2000magician]

My pleasure.