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Define Amortization & Impairment?
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Answer / afridi
1. The paying off of debt in regular installments over a
period of time.
2. The deduction of capital expenses over a specific period
of time (usually over the asset's life). More specifically,
this method measures the consumption of the value of
intangible assets, such as a patent or a copyright.
impairment
Reduction in a firm's capital as a result of distributions
or losses.
| Is This Answer Correct ? | 32 Yes | 8 No |
Answer / ravindra k. singh
Depreciation and amortization are types of tax deductions
used in a business venture. Depreciation applies to
tangible--that is visible, touchable--property like
buildings. Amortization applies to intangible property like
the good will associated with a well-known business name or
a recognized trademark. Amortization also carries an
additional meaning of paying off debt in installment
payments, such as with a mortgage.
| Is This Answer Correct ? | 4 Yes | 0 No |
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