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Difference between Depreciation and amortisation?
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Answer Posted / h.r. sreepada bhagi
Both Depreciation & Amortization are the method of charging
of the investments in long term assets over the life of the
assets. The term Depreciation is used for Tangible Assets
(Like Building, machinery, Furniture, Computers, etc.) & the
term Amortization is used for Intangible Assets (Like
Patents, Copy Rights, Goodwill, etc.)
The term amortization is also used in the context of
repayment of term loan. The loan repayment schedule is
sometimes referred to as 'Loan Amortization Schedule'.
Answer by Mr. Prakash is quite detail & good.
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