amortization vs depreciation

amortization depreciation


  • 1) The reduction of loan principle over a series of payments.
  • 2) The distribution of the cost of an intangible asset, such as an intellectual property right, over the projected useful life of the asset.
  • 3) The money set aside for this purpose.
  • 4) In reckoning the yield of a bond bought at a premium, the periodic subtraction from its current yield of a proportionate share of the premium between the purchase date and the maturity date.
  • 5) (Law) The act or right of alienating lands to a corporation, which was considered formerly as transferring them to dead hands, or in mortmain.
  • 6) The extinction of a debt, usually by means of a sinking fund; also, the money thus paid.
  • 7) the reduction of the value of an asset by prorating its cost over a period of years
  • 8) payment of an obligation in a series of installments or transfers
  • 9) Also admortization, amortizement.
  • 10) Extinction, as of debt, especially by a sinking-fund; a payment toward such extinction.
  • 11) The act of alienating lands or tenements to a corporation in mortmain.


  • 1) accounting The measurement of the decline in value of assets. Not to be confused with impairment, which is the measurement of the unplanned, extraordinary decline in value of assets.
  • 2) The state of being depreciated.
  • 3) The decline in value of assets.
  • 4) An instance of disparaging or belittlement.
  • 5) A decrease or loss in value, as because of age, wear, or market conditions.
  • 6) Reduction in the purchasing value of money.
  • 7) Accounting An allowance made for a loss in value of property.
  • 8) The act of lessening, or seeking to lessen, price, value, or reputation.
  • 9) The falling of value; reduction of worth.
  • 10) the state of being depreciated.
  • 11) a decrease in price or value
  • 12) A fall in value; reduction of worth.
  • 13) A belittling or running down of value or merit; conscious undervaluation or underestimation of the merits of a person, action, or thing; unfavorable judgment or scant praise: as, he is much given to the depreciation of even his best friends.
  • 14) The act of lessening or bringing down price or value.


  • 1) But for the overall health of the economy the definitive answer is this: sometimes a currency depreciation is beneficial and sometimes it isn't.
  • 2) A sharp currency depreciation can work both by increasing the price competitiveness of British exports and by encouraging domestic consumers to switch their spending away from imports.
  • 3) We can see how a currency devaluation or depreciation reduces real wages in two ways.
  • 4) Therefore it makes sense to aim for currency depreciation.
  • 5) So would a substantial depreciation of the value of the dollar.
  • 6) The organisation acknowledged the tax losses will be used against any future profits and depreciation.
  • 7) Therefore it gives up a valuable depreciation tax shield.
  • 8) The resulting amount is the basis in your car that you use to figure your depreciation deduction.
  • 9) And with high initial depreciation comes good value for money for second-hand buyers.
  • 10) In this business a 10 per cent profit after depreciation is considered very good going.
  • 11) Any reduction in present value represents economic depreciation; any increase in present value represents negative economic depreciation.
  • 12) The value of annual depreciation reduces each year under this second method which is often a better reflection of what happens to values in real life.
  • 13) The move reflects a political desire for less reliance on the dollar, as well as a need to avoid further depreciation in currency reserves.
  • 14) Earnings before interest, depreciation and tax doubled to 600,000.
  • 15) But in general, be prepared for depreciation in value, in a similar way to a car.
  • 16) At ten times underlying earnings before interest, tax, depreciation and amortisation it looks to be a full price.
  • 17) The economic turmoil that would be inflicted on Greece could be horrendous, as a huge currency depreciation could prompt bank collapses.
  • 18) As capital is withdrawn, refinancing becomes dearer, on top of which currency depreciation makes those loans more expensive to service.
  • 19) Currency depreciation is generally an ineffective remedy because differences in income, costs and quality tend to swamp all but the largest changes in currency exchange rates.
  • 20) Since the net savings rate has to be below 100% (simply because depreciation is non-negative), we can see that as an accounting identity, the rate of return on capital has to be bigger than the rate of growth of GDP.
  • 21) Residual value matters because depreciation is the largest single cost of owning a car.
  • 22) Self-depreciation is just the other side of the coin.
  • 23) In case you weren't aware, new cars take a big hit in depreciation in the first few years of ownership — a smart buyer lets someone else pay that "new car" tax.
  • 24) ‘The former is intended to compensate the host railway for depreciation of the fixed assets associated with use by other railways.’
  • 25) ‘It also ignores non-cash items such as depreciation of assets and the amortisation of acquisitions.’
  • 26) ‘It was inevitable that runaway property inflation would come to a halt but few anticipated asset depreciation in the housing market.’
  • 27) ‘In computing tax due on business profits, the trader is not given any allowance for depreciation of business assets.’
  • 28) ‘Consequently the capital service flow, or depreciation of the asset, cannot be readily determined with any precision.’
  • 29) ‘Initial stock market turmoil, currency depreciations, and oil price fluctuations are serious, but will probably stabilise in due course.’
  • 30) ‘Major negative influences were the continuous rise in the trade deficit and declining net investment, mainly due to the continuous rise in depreciations.’
  • 31) ‘Fixed exchange rates provided a source of constancy, and governments were no longer allowed to use competitive depreciations to promote exports.’
  • 32) ‘Many people have asked me exactly where I stand on currency depreciation.’
  • 33) ‘If one country has higher inflation than its trading partners, its currency band should be lowered to facilitate a gradual depreciation of its currency.’

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