maandamismeetodid

Maandamismeetodid, or amortization methods, are accounting approaches used to allocate the cost of an asset over its estimated useful life. They apply to both tangible assets (through depreciation) and intangible assets (through amortization) and influence reported profit and asset carrying values. The aim is to match the expense with the period in which the asset provides economic benefits, using a systematic basis.

Common methods include straight-line, which allocates the same amount of expense each period; declining balance, an accelerated method applying a fixed rate to the carrying amount to produce higher expenses in the early years; and sum-of-the-years-digits, another accelerated approach using a decreasing fraction of the depreciable amount. Units-of-production ties expense to actual usage, so depreciation varies with activity. Some frameworks also use component depreciation, allocating costs to different parts of an asset with separate useful lives. For intangible assets, amortization generally assumes a finite useful life and amortizes the cost over that period, with impairment review as needed.

Selection and governance: The choice of method should reflect the pattern of consumption of the asset’s benefits, be applied consistently, and be justified by the asset’s expected use. Estimates such as useful life, residual (salvage) value, and activity levels are reviewed regularly and revised prospectively if expectations change.

Regulatory framework: International Financial Reporting Standards (IFRS) and many national standards require systematic allocation of cost and disclosure of depreciation or amortization methods and useful lives. Intangible assets with finite lives are amortized; indefinite-lived assets are not amortized but tested for impairment.

Tax considerations: Tax authorities may prescribe or limit depreciation methods, leading to differences between accounting and tax bases and potential temporary differences.

See also: depreciation, amortization, useful life, impairment.