Amortisation or amortization, is the reduction in value of an intangible asset with a finite useful life over time. Its calculation is similar to that of straight line depreciation for a tangible fixed asset.
Last modified February 13th, 2023
Depreciation
Depreciation of Fixed Assets
Depreciation Expense
Depreciation expense or simply depreciation, is the reduction in value of a fixed asset due to wear and tear. Most fixed assets have a limited life, the exception being land, and therefore depreciate over time. An estimate of the cost of depreciation is included in the income statement each accounting period and represents an expense of the business.
Last modified October 4th, 2022