Definition for : Amortisation

The loss in Value of an Intangible asset due to its use by the company is accounted for by means of amortisation. Amortisation is a so-called "non-cash" charge insofar as it merely reflects arbitrary accounting assessments of the loss in Value.

(See Chapters Chapter 3 Earnings and Chapter 9 Margin analysis: Structure of the Vernimmen)

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