Amortization (asset) - Financial definition
Concise definition of the term amortization
In accounting, the term amortization refers to the gradual reduction of an asset's book value over its useful life.
Comprehensive definition of the term amortization
Through amortization a company charges the cost of an asset to expense in chunks over its expected period of use.
It thus gradually shifts from the balance sheet to the income statement, reflecting the depreciation assets usually experience with time.