Amortization Expense is the gradual, systematic reduction or allocation of an intangible asset’s cost over its useful life. It is most commonly used in accounting to refer to the periodic deductions from a company’s income statement related to intangibles such as patents and copyrights. Its purpose is to reflect the decreasing value of intangible assets over time due to their finite useful lives. Companies use amortization expense to record costs associated with the use of intangible assets for accounting purposes and for tax deductions. By recording the expense over multiple periods, a company can better match its long-term expenses with its revenues, allowing it to recognize and report more accurate financial results.