Amortiseerita

Amortiseerita is an Estonian verb form related to amortization, describing the process of gradually writing off the cost or value of an asset or a loan over time. In financial and accounting contexts, amortiseerimine refers to systematic cost allocation that matches an asset’s use or a loan’s benefit to the periods in which they contribute to revenue or value.

In accounting, amortization means spreading the cost of an intangible asset over its estimated useful life. This applies to assets such as software, licenses, patents, and certain intangible rights. The goal is to reflect the consumption of the asset’s economic benefits over time. Assets with finite useful lives are amortized, while indefinite-lived assets are typically not amortized but tested periodically for impairment. Amortiseerita (amortized) describes the result after the period’s expense has been recorded.

In finance, amortization also refers to the gradual repayment of a loan through regular payments that cover both interest and principal. An amortization schedule shows for each payment how much reduces the outstanding balance and how much covers interest, revealing the declining principal over the term of the loan.

Distinctions are commonly made between amortization and depreciation. Amortization typically applies to intangible assets, whereas depreciation is the analogous process for tangible fixed assets. The word can function as a verb or participial adjective in Estonian, with forms such as amortiseeritud or amortiseerita depending on tense and voice. Tax and regulatory frameworks may specify allowable amortization periods and methods, influencing reported profits and taxable income.