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Amortisation

This is similar to straight-line depreciation, allowing a business or individual to write off an expenditure over a number of years amortisation generally applies to intangible assets For example, you purchase a business consisting of a machine with a fair market value of $10,000 and goodwill of $15,000 You can't expense (write off) the cost in the year acquired, but you can depreciate the machine using any of several methods, including one that provides greater deductions in the early years The goodwill can only be amortised over 15 years using a straight-line method, or $1,000 per year

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  • Part of Speech: noun
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  • Industry/Domain: Accounting
  • Category: Tax
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Related terms

amortisation
Accounting; General accounting

Process similar to depreciation, usually applied to intangible fixed assets.

depreciation (amortisation)*
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The systematic allocation of the depreciable amount of an asset over its useful life.

amortisation (depreciation)*
Financial services; Accountancy

The systematic allocation of the depreciable amount of an asset over its useful life.

amortised cost of a financial asset or financial liability
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fine
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of very high quality, very thin Fine, pregiato, di qualità

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capacity
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The ability to perform an internal audit.

capability
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The ability to perform an internal audit.

ability-to-pay principle
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The idea that taxes should be levied on a person according to how well that person can shoulder the burden.

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