amortiserte

Amortiserte is the past participle form of the verb amortisere in Nordic languages, most commonly Norwegian and Danish, and translates to “amortized” in English. In accounting and finance, amortization refers to the systematic reduction of a debt or the allocation of the cost of an asset over its estimated useful life.

The term is used in two main contexts. First, amortisering of debt or loans describes the gradual repayment of principal over time according to a scheduled plan. As payments are made, the outstanding balance decreases, and the portion of each payment allocated to interest declines while the principal portion increases. A loan described as amortisert has had its principal gradually paid down until fully repaid.

Second, amortisering applies to intangible assets and certain deferred costs. The initial cost of an intangible asset (such as goodwill, patents, or software) or certain financing costs is allocated as an expense over its useful life. This allocation is called amortization, and the accumulated amortization reduces the asset’s book value on the balance sheet.

Differences from depreciation are notable: depreciation is the allocation of the cost of tangible fixed assets (like machinery or buildings) over their useful lives, while amortization covers intangible assets or specific loan-related costs. In many jurisdictions, amortization expense appears in the income statement, and the balance sheet shows net book value after accumulated amortization.

Spelling variations exist between American and British English (amortized vs amortised). In Nordic usage, amortiserte describes assets or debts that have undergone this process.