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Depreciation

Accountancy

Mam/sir CAN you explain what is Amortization. with an laymen's language examples. Y I asked this question means I got confused from others told pls with clear example tell me

Balachandar S

CA Inter

★ 59K+

05-Aug-21 17:47

569

Answers (7)

It is like Depreciation only, Depreciation is the expensing of a fixed asset over its useful life, where as Amortization is the practice of spreading an intangible asset's cost over that asset's useful life.

Kumar G

CA Final

★ 12K+

05-Aug-21 17:51

Sorry I did not get u

Thread Starter

Balachandar S

CA Inter

★ 59K+

05-Aug-21 18:03

Ok you will charge depreciation on fixed assets right!

Kumar G

CA Final

★ 12K+

05-Aug-21 18:12

But you can't charge depreciation on Intangible assets like Goodwill , in simple terms you have to written off certain of amount from intangible assets i.e amortization

Kumar G

CA Final

★ 12K+

05-Aug-21 18:14

Kumar G

But you can't charge depreciation on Intangible assets like Goodwill , in simple terms you have to written off certain of amount from intangible assets i.e amortization

Ok now I understood tq sir

Thread Starter

Balachandar S

CA Inter

★ 59K+

05-Aug-21 18:34

Most welcomeð???

Kumar G

CA Final

★ 12K+

05-Aug-21 18:35

Amortization is same as like depreciation and the only difference is that amortization is charged on intangible assets while the depreciation is charged on tangible assets. In simple amortization is charged on intangible assets

phanindra raj

CA Final

★ 9K+

06-Aug-21 09:10