Operating Model - Amortization Expense Projection
Hi All,
For background, I'm working on practicing financial modeling before starting my SA this summer. I'm looking at a model from Macabacus (https://www.macabacus.com/operating-model/income-…) and I'm a little confused on amortization expense projections here.
The model has amortization expense built as minimum of previous year amortization expense and other intangible assets on the BS. Can someone explain why this is the right approach? I've never seen it done this way.
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