Answer / Sandeep Kumar Jaiswar

Amortization refers to the systematic allocation of an intangible asset's cost over its useful life. It is a process of reducing the book value of an asset through periodic charges to expenses. Impairment, on the other hand, occurs when the carrying amount of an asset exceeds its recoverable amount, meaning it has a lower value than what is shown in the balance sheet. Impairment is reported as an expense.

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