The matching concept is an accounting practice whereby firms recognize revenues and their related expenses in the same accounting period. Firms report "revenues," that is, along with the "expenses" that brought them. The purpose of the matching concept is to avoid misstating earnings for a period.

Matching Concept:
The amortization of unidentified intangible assets is in terms of the matching concept. This concept states that expenses should be recognized in the same period as the related revenues. In the case of unidentified intangible assets, such as goodwill, they are considered to have a limited useful life and therefore need to be amortized over that period.

Amortization of Unidentified Intangible Assets:
- Unidentified intangible assets, like goodwill, are typically recognized in a business combination when the purchase price exceeds the fair value of identifiable net assets acquired.
- These assets are not identifiable or separable from the business and do not have a specific useful life like tangible assets.
- Since these assets are considered to have a limited useful life, they need to be systematically amortized over that period.
- The amortization of unidentified intangible assets is a way to allocate the cost of these assets over their estimated useful life, matching the expense with the revenue generated by these assets.
- This process of amortization helps in accurately reflecting the economic benefits derived from these assets over time and ensures that the financial statements provide a true and fair view of the company's financial position.
Therefore, the amortization of unidentified intangible assets aligns with the matching concept by spreading the expense over the periods in which the economic benefits are realized, in order to accurately match expenses with revenues.

Matching concept.