Definition
Amortization is the process of spreading the cost of intangible assets over their estimated useful lives. Intangible assets subject to amortization include patents, copyrights, trademarks, and goodwill. Amortization allocates the cost of intangible assets to expense systematically over time, reflecting their diminishing value or usefulness. Amortization expense is recorded on the income statement to reflect the consumption of intangible assets and their contribution to generating revenue.
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Private Limited Company (Ltd)
A Private Limited Company (Ltd) is a type of company where the ownership is divided into shares held by a small number of shareholders. The liability of shareholders is limited to the amount unpaid on their shares, and the company’s shares cannot be traded publicly on the stock exchange.
Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) is a business structure where partners have limited personal liability for the debts and obligations of the partnership. Each partner’s liability is limited to their investment in the LLP, and they are protected from the actions of other partners.