Amortization
Definition
The accounting value expression of the irreversible depreciation of a tangible or intangible fixed asset, resulting from physical or moral wear and tear or the passage of time, periodically transferred to expenses; a sum of money allocated periodically for the gradual extinguishment of a long-term debt or a bond loan according to a set schedule.
Bilingual Equivalents
- Amortization
- Depreciation charge
Grammatical & Source Details
| Inflection Type | Neuter noun, taking regular structural variations inside accounting and financial corporate reports. |
| Formation | Technical suffix adaptation derived from French 'amortissement', tracking systematic value reduction protocols. |
| Spelling / Pronunciation | [a.mor.tis.ˈment] |
| Source | GAAP Accounting Naming Standards and International Valuation Standards Manuals |
Contextual Usage Examples
RO: În fiecare lună, contabilul înregistrează un amortisment liniar pentru flota de vehicule a societății.
EN: Every month, the accountant records a linear depreciation charge for the society's vehicle fleet.
RO: Compania a creat un fond special de amortisment pentru a asigura răscumpărarea la termen a obligațiunilor emise.
EN: The company created a special sinking fund to ensure the timely redemption of the issued bonds.
RO: Legislația fiscală actuală stabilește clar metodele aprobate pentru calculul acestui amortisment anual.
EN: Current tax legislation clearly establishes the approved methods for calculating this annual amortization.
Idioms & Phrases
Amortisment liniar / Straight-line depreciation / Linear amortization
RO: Metodă de calcul prin care valoarea activului este depreciată în mod egal și constant pe întreaga durată de utilizare economică.
EN: A calculation method whereby the asset's value is depreciated equally and constantly over its entire useful economic life.
Fond de amortisment / Sinking fund / Amortization fund
RO: Rezervă de capital acumulată treptat din profituri sau alocări periodice, destinată înlocuirii activelor uzate sau plății unei datorii.
EN: A capital reserve gradually accumulated from profits or periodic allocations, intended for replacing worn-out assets or paying off a debt.
Plan de amortisment / Amortization schedule
RO: Grafic detaliat sau tabel care prezintă evoluția deprecierii unui bun ori succesiunea plăților pentru stingerea unui împrumut.
EN: A detailed chart or table presenting the progression of an asset's depreciation or the sequence of payments for extinguishing a loan.
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