Financial Statements

Amortisation

Definition

What is Amortisation?

The systematic allocation of an intangible asset's cost over its useful life.

Example in practice

A software licence is amortised over five years.

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Income generated from selling goods or services before expenses are deducted.

The percentage increase or decrease in revenue over a period.

Direct costs attributable to goods or services sold during a period.

Gross profit expressed as a percentage of revenue.

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