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Browse terms140
Browse terms140

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Amortization

The systematic recognition of an intangible asset's declining value or cost over its estimated economic life, recorded as expense and reduced book value.

What traders should verify

For Amortization, identify the statement, reporting period, accounting policy, footnote support, comparable periods, and cash-flow effect.

Do not conflate

Amortization is an accounting measure or classification; it is not automatically cash, fair value, liquidity, or current market value.

Primary source

SEC definition

Source boundary: this glossary reflects SEC staff views and is not a Commission rule, regulation, or statement. Check the linked source for current wording and legal context.

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