Amortisation (Noun)
Meaning 1
The reduction of the value of an asset by prorating its cost over a period of years.
Classification
Nouns denoting acts or actions.
Examples
- The company's accountant carefully calculated the amortisation of the new equipment over its expected lifespan of 10 years.
- The depreciation and amortisation of the company's assets were major expenses on its annual balance sheet.
- The accountant spread the cost of the patent over 20 years through a process of amortisation.
- The amortisation of the loan was set at 10 years, with equal annual payments to be made by the borrower.
- The company's financial statements showed a significant charge for amortisation of goodwill following the acquisition of a rival firm.
Synonyms
Hypernyms
Meaning 2
Payment of an obligation in a series of installments or transfers.
Classification
Nouns denoting acts or actions.