amortizatsiya
Amortizatsiya is the systematic allocation of the cost of a long-term asset over its estimated useful life. In accounting practice, it covers depreciation of tangible fixed assets and amortization of intangible assets, depending on the asset type and local rules. The purpose is to match the expense with the periods that benefit from the asset’s use and to present a fair view of profitability and asset values.
Assets eligible for amortizatsiya include tangible assets such as buildings and machinery, as well as intangible
Methods used to calculate amortizatsiya include straight-line (equal amounts each period), accelerated methods such as declining
Accounting and tax treatment vary by jurisdiction. Amortizatsiya reduces the asset’s carrying amount and is recorded
Example: A software license purchased for 100,000 with a 5-year useful life and no residual value is