Depreciation and Amortisation
This query is : Resolved
10 November 2024
is depreciation charges on Tangible Fixed Assets and Amortization on intangible Fixed Assets.
Dhirajlal Rambhia
(Expert)
10 November 2024
Yes, that's correct!
Depreciation refers to the allocation of the cost of tangible fixed assets (such as buildings, machinery, vehicles, or equipment) over their useful life. These are physical assets that lose value over time due to wear and tear, aging, or obsolescence.
Amortization refers to the allocation of the cost of intangible fixed assets (such as patents, trademarks, copyrights, or goodwill) over their useful life. Unlike tangible assets, intangible assets don't have a physical presence, but their value may decline over time, and amortization is used to systematically expense this decline.
Depreciation refers to the allocation of the cost of tangible fixed assets (such as buildings, machinery, vehicles, or equipment) over their useful life. These are physical assets that lose value over time due to wear and tear, aging, or obsolescence.
Amortization refers to the allocation of the cost of intangible fixed assets (such as patents, trademarks, copyrights, or goodwill) over their useful life. Unlike tangible assets, intangible assets don't have a physical presence, but their value may decline over time, and amortization is used to systematically expense this decline.
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