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Amortization

Systematic expense recognition for intangible assets

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Fundamental

Amortization

Systematic expense recognition for intangible assets

Definition

Amortization is the process of gradually expensing the cost of intangible assets (like patents, trademarks, or goodwill) over their useful life. Similar to depreciation for tangible assets, it reduces reported earnings but doesn't involve actual cash outflows.

Related Topics

#accounting #intangible assets #earnings #depreciation

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Category: Fundamental

Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.

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