Amortisation - Revision history

Doug: Mend links.

2024-08-10T05:13:12Z

Mend links.

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	* [[Effective interest method]]		* [[Effective interest method]]
	* [[Financial reporting]]		* [[Financial reporting]]
	* [[IAS 16]]		* [[IAS 16]] (Tangible assets - Property, plant and equipment)
	* [[IAS 38]]		* [[IAS 38]] (Intangible assets)
	* [[Impairment]]		* [[Impairment]]
	* [[Intangible assets]]		* [[Intangible assets]]

2024-03-29T19:35:32Z

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2023-01-31T12:07:04Z

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← Older revision		Revision as of 12:07, 31 January 2023
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	Some accounting jurisdictions - including the US - use the term amortisation/amortization both for tangible and intangible assets.		Some accounting jurisdictions - including the US - use the term amortisation/amortization both for tangible and intangible assets.


			Under International Financial Reporting Standards (IFRS), the relevant standards are IAS 16 for tangible longer-term assets, and IAS 38 for intangible longer-term assets.


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	* [[Impairment]]		* [[Impairment]]
	* [[Intangible assets]]		* [[Intangible assets]]
			* [[International Financial Reporting Standards]] (IFRS)
	* [[Licence]]		* [[Licence]]
	* [[Reducing balance]]		* [[Reducing balance]]

2023-01-31T12:05:23Z

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2022-12-07T10:37:34Z

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2022-12-07T10:37:07Z

Add US spelling 'amortization'.

← Older revision		Revision as of 10:37, 7 December 2022
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	Some accounting jurisdictions use the term amortisation both for tangible and intangible assets.		Some accounting jurisdictions - including the US - use the term amortisation/amortization both for tangible and intangible assets.

2022-07-18T22:10:07Z

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2022-05-02T11:02:00Z

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	Examples include the straight line basis and the reducing balance basis.		Examples include the straight line basis and the reducing balance basis.


			Some accounting jurisdictions use the term amortisation both for tangible and intangible assets.

2021-08-11T15:15:08Z

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2021-08-09T23:54:09Z

Expand first definition.

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	1. ''Financial reporting - intangible fixed assets''.		1. ''Financial reporting - intangible fixed assets''.

	In financial accounting, the writing down of the value of an intangible fixed asset - such as a licence - over time.		In financial accounting, amortisation is the writing down of the value of an ''intangible'' fixed asset - such as a licence - over time.

			Similar to the ''depreciation'' of ''tangible'' (physical) fixed assets.

			Amortisation is applying the ''accruals accounting'' principle to spread the total cost of intangible long term assets over their expected useful life.

	~~Similar to the depreciation of tangible (physical) fixed assets.~~

	As for depreciation, financial reporting standards generally permit the use of any systematic and consistent basis for allocating the total cost.		As for depreciation, financial reporting standards generally permit the use of any systematic and consistent basis for allocating the total cost.
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	In this broader sense, amortisation can include the (financial reporting) writing down over time of the value of any fixed asset, including both tangible and intangible assets.		In this broader sense, amortisation can include the (financial reporting) writing down over time of the value of any fixed asset, including both tangible and intangible assets.