The term “amortization” is the periodic reduction in value of an intangible asset or loan over time. In relation to an asset, amortization is the accounting process of expensing the cost and measures the consumption of the value of an
When an asset is put to use, it is subject to varied degree of wear and tear, depending on the usage of asset. Because of this wear and tear, it’s value decreases over a period of time. This decrease in
Recognition is the process of formally introducing an item into the financial statements of an entity as an asset, liability, revenue, expense, or the like.