amortissement Definition
the gradual reduction of the value of an asset over time, usually through depreciation or amortization.
Using amortissement: Examples
Take a moment to familiarize yourself with how "amortissement" can be used in various situations through the following examples!
Example
The company uses amortissement to account for the decrease in value of its machinery.
Example
Amortissement is a common practice in accounting to spread out the cost of an asset over its useful life.
Example
The accountant calculated the annual amortissement of the building to be $10,000.
Origins of amortissement
from French 'amortir', meaning 'to kill off'
Summary: amortissement in Brief
'Amortissement' [a.mɔʁ.tis.mɑ̃] refers to the gradual reduction of the value of an asset over time, often through depreciation or amortization. It is a common practice in accounting to spread out the cost of an asset over its useful life, as exemplified by 'The company uses amortissement to account for the decrease in value of its machinery.'
