Amortizált

Amortizált is the Hungarian adjective meaning amortized. In accounting and finance, it refers to something that has undergone amortization, the systematic allocation of a cost over an asset’s expected useful life or the scheduled repayment of a loan’s principal over time. The term is used to describe both assets and financial obligations whose value or balance has been gradually reduced.

In accounting, amortization is the process of expensing the cost of an asset with finite life, especially intangible assets such as patents, licenses, software, and, in some jurisdictions, goodwill. The cost is allocated over the asset’s useful life using a chosen amortization method, commonly straight-line, which yields a fixed annual amortization expense. The accumulated amortization is subtracted from the asset’s cost to determine its carrying amount, or net book value.

For loans, amortization denotes the repayment schedule where each payment covers interest and a portion of the principal, reducing the outstanding balance over time. This affects the loan’s balance sheet and the recorded interest expense in the income statement.

Tax and reporting: amortization is often deductible for tax purposes under local rules. Methods vary by jurisdiction, with straight-line being the simplest and accelerated methods available in some regimes. Impairment tests may apply if the asset’s fair value declines beyond its amortized cost.

Remarks: In Hungarian accounting practice, amortizáció is commonly associated with intangible assets, while tangible assets are often described via depreciation (értékcsökkenés). The form amortizált may appear to indicate assets or expenses that have already undergone amortization.