Amortisation
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.
