amortizovaném

Amortizovaném is a Czech word that translates to "amortized" in English. In finance and accounting, amortization refers to the process of gradually writing off the initial cost of an intangible asset over its useful life. Unlike depreciation, which applies to tangible assets like buildings or machinery, amortization specifically relates to assets that lack physical substance but still hold value.

Examples of intangible assets that are amortized include patents, copyrights, trademarks, and goodwill. The cost of acquiring or developing these assets is spread out over a period of time, typically corresponding to their expected lifespan or the duration of their legal protection. This systematic allocation of cost helps businesses accurately reflect the value of these assets on their balance sheets and provides a more realistic picture of their profitability.

The amortization process is usually done on a straight-line basis, meaning an equal portion of the asset's cost is expensed each accounting period. However, other methods can be used depending on the nature of the asset and accounting standards. Amortization is an important accounting practice that ensures that the cost of an intangible asset is matched with the revenues it helps generate over time, adhering to the matching principle in accounting.