Amortisaatiomäärien

Amortisaatiomäärien refers to the amounts of amortization, a financial accounting process used to gradually write off the initial cost of an intangible asset over its useful life. Intangible assets are non-physical assets like patents, copyrights, trademarks, and goodwill. Unlike tangible assets such as buildings or machinery, they cannot be physically touched but still hold economic value. Amortization is similar to depreciation, which is used for tangible assets.

The purpose of amortization is to match the expense of using an intangible asset with the revenues it helps generate over time. This provides a more accurate picture of a company's profitability. The amortization period is typically determined by the asset's legal life or its expected economic usefulness. The amortization amount for each period is calculated by dividing the asset's cost by its useful life. For example, if a company purchases a patent for 100,000 euros with a useful life of 10 years, the annual amortization expense would be 10,000 euros. This amount is then recorded as an expense on the income statement and reduces the carrying value of the intangible asset on the balance sheet. Accounting standards, such as IFRS and GAAP, provide guidelines on how amortization should be calculated and reported.