noun
- The process of gradually paying off a debt, such as a loan or mortgage, through regular payments over a set period of time.
- In accounting, the allocation of the cost of an intangible asset over its useful life.
Usage: Chiefly British spelling; American English typically uses 'amortizations'; Commonly used in finance and accounting contexts
Usage: Technical accounting term; Similar to depreciation but applied to intangible assets such as patents, copyrights, and goodwill
Examples
- The bank provided a detailed amortisations schedule showing how the mortgage would be paid off over 30 years.
- Under the new accounting standards, the company must record amortisations of its software licenses annually.
- The loan amortisations were structured to allow for lower payments in the early years.
- The financial statement included amortisations of intangible assets acquired in the merger.
- She reviewed the amortisations table to understand how much principal and interest she would pay each month.