amortization


Also found in: Dictionary, Thesaurus, Medical, Legal, Financial, Wikipedia.
Related to amortization: depreciation, EBITDA, Amortization schedule

amortization

(ăm'ərtəzā`shən, əmôr`–), reduction, liquidation, or satisfaction of a debt. The term amortization may also refer to the sum used for that purpose. The term is commonly used in ascertaining the investment value of securities. Thus, if a security is bought at more than its face value (i.e., at a premium), a part of the premium is periodically charged off in order to bring the value of the security to par at maturity; if the security is bought at less than its face value, the discount is similarly charged off. Paying off a mortgage or any other debt by installments or by a sinking fundsinking fund,
sum set apart periodically from the income of a government or a business and allowed to accumulate in order ultimately to pay off a debt. A preferred investment for a sinking fund is the purchase of the government's or firm's bonds that are to be paid off.
..... Click the link for more information.
 is amortization. Amortization by paying off a certain number of bonds each year is practiced by public corporations. National governments of limited credit as well as private companies commonly amortize by sinking funds. Governments with stronger credit usually refund debts by issuing new bonds. The satisfying of a debt by a single payment may be termed amortization. Amortization of a fixed asset refers to the depreciationdepreciation,
in accounting, reduction in the value of fixed or capital assets, as by use, damage, weathering, or obsolescence. It can be estimated according to a number of methods.
..... Click the link for more information.
 of a nonmaterial investment over its estimated average life.
References in periodicals archive ?
Interest cost plus transition amortization exceeded 74 percent for all but three immature field test companies.
Therefore, the responsibility of reporting OID amortization falls on the taxpayer, his income tax preparer or his broker.
Subseries 3 class A and B certificateholders will receive monthly interest payments of one-month LIBOR plus 8 and 26 basis points, respectively, throughout the revolving and accumulation periods and on the expected final payment date, provided an early amortization event does not occur.
Expenses incurred by an existing business do not qualify for amortization, as "these expenses will continue to be currently deductible.
Financing was based on a 10 year term with a 19 year amortization.
Pension fund experts will tell you that amortization trends matter more than accountants' moment-in-time snapshots of unfunded liabilities when assessing pension fund health.
A $543,750 new mortgage for a 5 year arm, 10 year ballon 25 year amortization schedule on a 9 unit, 4 story walk-up in Bronx, NY.
This article describes situations in which it is appropriate to avoid amortization on these intangible assets and offers an approach based on Statement no.
Goodwill also has the potential to hurt earnings if it ever becomes impaired, since FAS 142, which eliminated amortization of goodwill and intangible assets, also requires annual and periodic impairment tests.
Cash flow, economic value added (EVA) and earnings before interest, taxes, depreciation and amortization (EBITDA) valuation models should continue to gain momentum as key benchmarks under the new rules.
The loan has a fixed interest rate and a 20-year amortization.
On September 29, 1997, Tax Executives Institute submitted the following comments to the Internal Revenue Service on proposed regulations under sections 167 and 197 of the Internal Revenue Code, relating to the amortization of certain intangible property.