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Amortization and Depreciation

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Synonyms

Amortization and depreciation have the same meaning. In some countries, the term provision is used in the context of items such as depreciation and impairment of assets; these kinds of provision are to be intended as adjustments to the carrying amounts of assets.

Definition

Proper definitions are provided in the International Accounting Sector Accounting Standards. In this document the references are to IPSAS 17, Property, Plant, and Equipment, and IPSAS 31, Intangible Assets.

Amortization:

Amortization is the systematic allocation of the depreciable amount of an asset over its useful life. In the case of an intangible asset, the term amortization is generally used instead of depreciation. Both terms have the same meaning.

Depreciation:

Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. In the case of a tangible asset, the term depreciation is generally used instead of amortization. Both terms have the same meaning.

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Keywords

  • Intangible Asset
  • Historical Cost
  • Service Potential
  • Lease Term
  • Impairment Loss

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Correspondence to Marco Maffei .

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© 2016 Springer International Publishing Switzerland

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Maffei, M. (2016). Amortization and Depreciation. In: Farazmand, A. (eds) Global Encyclopedia of Public Administration, Public Policy, and Governance. Springer, Cham. https://doi.org/10.1007/978-3-319-31816-5_2276-1

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  • DOI: https://doi.org/10.1007/978-3-319-31816-5_2276-1

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  • Publisher Name: Springer, Cham

  • Online ISBN: 978-3-319-31816-5

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