Definition

1. 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.

Verb

1. liquidate gradually