/əˈmɔtəzeɪʃən/ · noun. the reduction of the value of an asset by prorating its cost over a period of years. synonyms: amortisation. see moresee less. type of. The depreciation or amortisation of an asset is directly related to the goods and services: a house, a motorbike, a boat, a household appliance, etc. While the. Amortisation usually refers to the expensing of intangible capital assets (intellectual property: patents, trademarks, copyrights, etc.). Define amortisation. amortisation synonyms, amortisation pronunciation, amortisation translation, English dictionary definition of amortisation. The asset is amortized by the same rate for each year of its useful life. This method is sometimes used to account for the fact that some assets lose more value.
Once the loan principal is repaid, it's said to be a fully amortized loan. This means that a buyer can draw against their limit, pay it down, then draw. Amortisation is an efficient accounting tool used by companies to offset the costs of their intangible assets and also pay off their debts in a timely manner. What is amortisation? Amortisation is the process of spreading the repayment of a loan, or the cost of an intangible asset, over a specific timeframe. Definition of amortization noun in Oxford Advanced Learner's Dictionary. Meaning (British English also amortisation). [uncountable, countable] (business). Read the definition of 'amortisation' in our free online financial glossary: The depreciation of intangible assets (e.g. licences, patents. Amortisation is a practice that helps spread the cost of an intangible asset over a specific period, which is usually the course of its useful life. It occurs. Amortization is an accounting technique used to periodically lower the book value of a loan or intangible asset over a set period of time. amortized, adj. meanings, etymology, pronunciation and more in the Oxford English Dictionary. AMORTIZE meaning: 1. to reduce a debt or cost by paying small regular amounts Costs before depreciation and amortisation jumped 45% in a single year. Accounting terms can be confusing. In this blog post, learn what Amortisation means so you can understand your business financials.
Hence, they are not composed of parts or materials with a defined benefit or life span, which can be objectively determined. amortized. Classification. AMORTIZATION meaning: 1. the process of reducing a cost or total in regular small amounts: 2. the process of reducing a. Learn more. It primarily means the reduction of a loan over a specific time. Amortisation primarily focuses on paying the same amount every month. Recording these payments. Early Amortization Period means the period commencing on the date on which a Trust Early Amortization Event or a Series VFN Early Amortization Event is. Amortisation is the depreciation of intangible assets for bookkeeping and tax purposes. It can also refer to the reduction of a loan over time. Definition of amortisation in the Financial Dictionary - by Free online English dictionary and encyclopedia. What is amortisation? Meaning of amortisation. Amortisation refers to the routine decline in value of an intangible asset over time. It is also used to describe the repayment of a loan or finance agreement. Amortisation can refer to a process of clearing debt over time in daily interest and principal instalments that are necessary to repay the loan in full by its. Learn about what amortisation is, and why it is necessary to keep your business growing. Find out more accounting terms in the QuickBooks' Glossary.
Definition for: Amortisation The loss in Value of an Intangible asset due to its use by the company is accounted for by means of amortisation. Amortisation. Amortization (zoning), the time period a non-conforming property has to conform to a new zoning classification before the non-conforming use becomes prohibited. English. edit. Alternative forms. edit · amortisation (British). Etymology. edit. From Middle English amortisen (“to kill, alienate in mortmain”), from Anglo-. Translation for 'Amortisation' using the free German-English dictionary by LANGENSCHEIDT -– with examples, synonyms and pronunciation. Amortization definition for accounting · How to calculate amortization · Amortization vs. depreciation: what's the difference? · Why is amortization in accounting.
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