Amortization

The scheduled or systematic reduction of a balance in an account (most often an intangible asset account or non-current liability account) over an appropriate period of time. The methods used to amortize an intangible asset are similar to methods used to depreciate tangible assets. Amortization of non-current liabilities (long term debt) involves the periodic reduction of the principal amount by regular principal debt repayments over time. (II-12; III-4, 15-17, 19-22; IV-2)

Authorization Path: 2.2.5.2.43.1