What is the term used for depreciation in relation to intangible assets?

The term used for depreciation in relation to intangible assets is amortization. This accounting process involves gradually allocating the cost of an intangible asset over its useful life, reflecting the consumption of the asset's value over time.

Amortization is similar to depreciation, which is applied to tangible assets, but it specifically focuses on non-physical assets such as patents, copyrights, trademarks, and goodwill. By spreading out the cost of these intangible assets, companies can better match their expenses with the revenues generated from the use of these assets, thus adhering to the matching principle in accounting.

The other terms provided have distinct meanings. For instance, devaluation typically refers to the reduction in the value of a country's currency relative to others and is not applicable to intangible assets. Impairment involves recognizing a permanent reduction in the value of an asset, potentially affecting both tangible and intangible assets, but it does not describe the systematic allocation of cost over time. Capitalization refers to the process of recording an expense as an asset on the balance sheet, which is not applicable to the concept of depreciation or amortization of intangible assets. Hence, the use of the term amortization is appropriate when discussing the treatment of intangible assets in accounting.