BusinessAugust 18, 2026

amortization

uh-mor-tih-ZAY-shun

Definition

The process of gradually writing off the initial cost of an asset over its useful life, often grouped with depreciation in financial reporting.

Etymology

Derived from the Old French 'amortir', meaning 'to make dead', which traces back to the Latin 'ad' (to) and 'mort' (death), signifying the gradual 'killing off' of a debt or asset value.

In the news

The article includes amortization in the definition of a core profit metric, explaining that the company's earnings are calculated before accounting for these non-cash expenses.

BHP Reports Strong FY Results, Copper Business Surpasses Iron Or

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