Amortisation: Difference between revisions
imported>Doug Williamson (Define tangible.) |
imported>Doug Williamson (Layout.) |
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In financial accounting, 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. | |||
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More generally, the spreading of any amount or difference over time. | |||
3. | |||
The spreading of a pension scheme surplus or deficit over a period of time, often for the purposes of granting a Contributions holiday (in the case of a surplus) or calculating deficit reduction contributions (in the case of a deficit). | |||
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The repayment or reduction of the principal amount of an obligation over time. For example the repayment of loan principal by instalments. | |||
5. | |||
In financial accounting, where there is a difference between the initial amount and the maturity amount of a financial asset or a financial liability, the spreading of that difference over time. The spreading calculation is commonly made using the Effective interest method. | |||
Revision as of 15:13, 13 May 2016
1.
In financial accounting, 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.
2.
More generally, the spreading of any amount or difference over time.
3.
The spreading of a pension scheme surplus or deficit over a period of time, often for the purposes of granting a Contributions holiday (in the case of a surplus) or calculating deficit reduction contributions (in the case of a deficit).
4.
The repayment or reduction of the principal amount of an obligation over time. For example the repayment of loan principal by instalments.
5.
In financial accounting, where there is a difference between the initial amount and the maturity amount of a financial asset or a financial liability, the spreading of that difference over time. The spreading calculation is commonly made using the Effective interest method.
