amortizálódik

Amortizálódik is a Hungarian verb that describes the process of something gradually losing value over time due to wear and tear, obsolescence, or usage. It is most commonly used in financial and accounting contexts to refer to the depreciation of assets.

In accounting, amortizálódik specifically relates to the systematic allocation of the cost of an intangible asset over its useful life. Intangible assets, unlike tangible ones, do not have a physical form. Examples include patents, copyrights, trademarks, and goodwill. When a company purchases an intangible asset, it is recorded on the balance sheet at its cost. Over time, as the asset is used or its legal life expires, its value diminishes, and this reduction in value is recognized as an expense through amortization. This process ensures that the cost of the asset is matched with the revenues it helps to generate.

The concept of amortizálódik extends beyond financial reporting. It can also describe the gradual wearing out of physical assets like machinery or buildings, though in this context, the term "depreciálódik" (depreciates) is more frequently used. In a broader sense, amortizálódik can refer to anything that diminishes in strength or effectiveness over time through natural processes or sustained use. For instance, a person's physical stamina might amortizálódik if they stop exercising regularly.