Amortize definition
/What is Amortize?
To amortize is the process of writing off the book value of an asset over its useful life . The term is most commonly applied to intangible assets . Amortization is usually conducted on a straight-line basis, with no acceleration of the write-off in the earlier periods of an asset’s useful life.
Amortization vs. Depreciation
Amortization is used to charge the value of intangible assets to expense , while depreciation performs the same function for tangible assets . Amortization is usually conducted on a straight-line basis, while depreciation may be accelerated . Most organizations report much more depreciation expense than amortization expense, because they hold more tangible assets than intangible ones.