Amortisation is a term used to describe the reduction in value of an asset through wear or obsolescence. In relation to tangible fixed assets, amortisation is mode commonly known as “depreciation”. In the UK, amortisation usually refers to the reduction in value of intangible assets such as acquired goodwill.


reference: Business Studies / Accounting. Accounts & Finance Glossary. Jim Riley BA(Hons) MBA FCA // tutor2u