Amortization Meaning In Accounting. An example of amortization is the systematic allocation of the balance in the contra-liability account Discount of Bonds Payable. What does amortization mean.
This write-off results in the residual asset balance declining over time. Aug 24 2017 In accounting the amortization of intangible assets refers to distributing the cost of an intangible asset over time. An example of amortization is the systematic allocation of the balance in the contra-liability account Discount of Bonds Payable.
Dec 25 2020 Amortization is the process of incrementally charging the cost of an asset to expense over its expected period of use which shifts the asset from the balance sheet to the income statement.
For intangible assets the recognition of expense is called amortization not depreciation. What is meant by intangible assets. The first is the systematic repayment of a loan over time. The amount of this write-off appears in the income statement usually within the depreciation and amortization.
