Amortization

Knowledge Center

   

Description of Amortization. Explanation.

 

Definition Amortization. Description.


Amortization is an accounting term for the gradual recognition of the expenses associated with intangible assets such as brands, trademarks, copyrights, goodwill and so on, typically over a period of several years. The expenses are initially added to the value of the asset, and gradually transferred from the balance sheet to the income statement using a fixed schedule, usually a constant amount per month (or other accounting period).


The use of amortization affects a company's (or an individual's) financial statements, and, in most countries, their taxes.


The advantage of amortization is that it allows the organization to properly recognize that such expenses contribute to productivity or profitability over a relatively long period. Note that the determination of which intangible assets can be amortized, and what period to use, can have substantial effects on the reported profitability of an enterprise.


The similar concept for tangible assets is called depreciation.


Special Interest Group - Amortization


Special Interest Group (36 members)


Forum - Amortization  

In the forum section you will find recent discussions within this knowledge area.


  Quotes on Amortization. Quotations (1 reactions)
Hi, do you know of a remarkable, humorous quote by a famous ...
 
 
 
 

Best Practices - Amortization

In the best practices section you will find the best forum discussions within this knowledge area.



Expert Tips - Amortization

In the expert tips section you will find advices from experts within this knowledge area.



Resources - Amortization

In the Resources section you will find powerpoint presentations, micro-learning videos, articles, news items, etc. within this knowledge area.


Introduction and Summary of Intangible Assets (IAS38)

Initial Understanding of Intangible Assets, Accounting Treatment...
 
 

News about Amortization


     
 

Videos about Amortization


     
 

Presentations about Amortization


     
 

Books about Amortization


     
 

More about Amortization


     

Compare also: Pro Forma Earnings  |  Depletion  |  Depreciation  |  Time Value of Money  |  Social Capital  |  Relational Capital

Special Interest Group Leader

You here? Sign up for free


 
 

Return to Management Hub: Decision-making & Valuation  |  Finance & Investing  |  Knowledge & Intangibles


More on Management  |  Return to Management Dictionary  | 

 

This ends our Amortization summary and forum.



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2019 12manage - The Executive Fast Track. V15.0 - Last updated: 19-6-2019. All names of their owners.