# What is Amortization?

Amortization or amortisation, is the reduction in value of an intangible asset with a finite useful life over time. The calculation of amortization is similar to that of straight line depreciation for a tangible fixed asset.

Most intangible assets such as copyright, have a finite useful life over which the benefit from them will be derived and therefore they need to be amortized over that lifetime.

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Amortization May 21st, 2013