Over what period does Engel & Volkers amortize internally developed software?

According to Engel & Volkers' 2025 Franchise Disclosure Document, internally developed software is amortized using the straight-line method over its estimated useful economic life. This useful life is determined to be three years.

For a prospective franchisee, this means that any internally developed software Engel & Volkers uses will have its cost spread out evenly over a three-year period for accounting purposes. This amortization reflects the gradual decline in the software's value as it ages and becomes outdated.

This accounting practice is important for understanding Engel & Volkers' financial statements, as it affects the reported expenses and asset values. Capitalizing and amortizing software costs allows Engel & Volkers to match the expense of the software with the revenue it generates over its useful life, providing a more accurate picture of the company's profitability.