amortise
/ə'mɔ:taiz/ Cách viết khác : (amortise) /ə'mɔ:taiz/
Học thuậtThân thiện
Definition
- Verb:
- To liquidate or pay off a debt gradually through regular payments over a period of time. This typically involves a structured schedule where each payment covers both interest and a portion of the principal amount.
- To write off or reduce the value of an intangible asset over its estimated useful life. This is an accounting practice, similar to depreciation for physical assets.
Usage
- The verb "amortise" is used in financial and accounting contexts. It is a transitive verb, requiring a direct object (e.g., a debt, a loan, an asset).
- In American English, the spelling "amortize" is more common, while "amortise" is standard in British English.
Examples
- Financial Debt:
- The company took out a loan and will amortise it over ten years.
- Our mortgage is structured to amortise the principal balance monthly.
- Accounting for Assets:
- The firm decided to amortise the cost of the patent over its 15-year legal life.
- Goodwill from the acquisition must be amortised according to accounting standards.
Advanced Usage
- "To be fully amortised": Refers to a debt that has been completely paid off through the scheduled payments.
- After 30 years, the home loan was fully amortised.
- Amortisation Schedule: A detailed table showing the breakdown of each periodic loan payment into principal and interest.
- The bank provided an amortisation schedule for the car loan.
Variants and Related Words
- Amortisation (noun, chiefly British English): The process of amortising.
- The amortisation of the intangible asset affects the company's earnings.
- Amortizable (adjective): Capable of being amortised.
- Not all acquisition costs are amortizable for tax purposes.
Synonyms
- Liquidate: To settle a debt.
- Pay off: To repay a debt in full, often gradually.
- Write off: To reduce the book value of an asset to zero.
Related Phrases
- Amortise over time: To spread the cost or repayment across a specific duration.
- The development costs will be amortised over time to match the revenue they generate.