• Home
• Search
• Add
• Suggestion

Definition: Amortization is the accounting treatment for the gradual recognition of the expenses associated with intangible assets such as brands, trademarks, copyrights, goodwill, etc., typically over a period of several years.
Such 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.
The use of amortization affects a company's (or an individual's) financial statements, and, in most countries, their taxes.
The similar concept for tangible assets is called depreciation.