Amortization

  • Reducing the amount of a debt obligation by making periodic payments covering interest, and part of the principal.
  • The process of writing off or expensing the cost of intangible assets over a period of time, usually in years. Amortization of intangible assets vs depreciation of tangible assets. Intangible assets purchased, such as goodwill and covenants-not-to-compete, can be written off over 15 years.
Previous Post

Appreciation

Next Post

Amendment