amortization


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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.
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 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.
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 of a nonmaterial investment over its estimated average life.
References in periodicals archive ?
After a project is completed, a straight-line amortization is applied.
A $390,000 new mortgage for a 5 year arm, 15 year balloon, 25 year amortization schedule on a 5 unit, 2 story walk-up in Brooklyn, NY.
For amortization purposes, X is entitled to $3 total depreciation per year ($45/15 years).
This article describes situations in which it is appropriate to avoid amortization on these intangible assets and offers an approach based on Statement no.
In fact, FAS 142 refers to paragraph 30 of FAS 109: "Deferred income taxes are not recognized for any portion of goodwill for which amortization is not deductible for income tax purposes," and "the recognition of deferred income taxes is required when amortization of goodwill is deductible for tax purposes.
Another large threat to comparability across companies arises from allocations to in-process research and development, separately recorded intangible assets (some subject to amortization, and some not) and goodwill.
We believe that the diversity and professional training of our members enable us to bring an important, balanced, and practical perspective to the issues raised by the proposed regulations under sections 167 and 197 of the Internal Revenue Code, relating to the amortization of certain intangible property.
This approach means that, in the case of an amortizable BIG asset with basis amortized over a relatively short remaining recovery period, the hypothetical amortization of the BIG calculated over a longer, new recovery period may not exceed the actual amortization.
The market generally adjusts for the cosmetic earnings decrease associated with purchase accounting when purchasing companies include amortization of goodwill in their net income by placing more value on those earnings.
The second part of this difficult debate centers on the goodwill amortization method and rate under purchase accounting.
90-63 significantly improves the treatment of accounting for the costs of package designs because it permits amortization of the costs of package designs on hand as of the beginning of the year of change.
Due to the low level of refinancing risk and the contractual subordination of the notes, Fitch considers consolidated DSCRs based on the scheduled amortization as the relevant measure of default.