smartest-data blog

A non-cash expense taken against the Profit and Loss for the reduction in the Balance Sheet Valuation of intangible assets.

Amortisation is an expense, used in the preparation of a company’s annual financial statements and as it is a non-cash item as there is no cash payment. As amortisation is recognised as an expense, it reduces the taxable income of a company, while not impacting the company’s cash position. An adjustment is made in preparing the Cash Flow Statement. The purpose is to recognise the decreasing value of an intangible asset and has the effect of reducing the value of the intangible asset on the balance sheet. An amortisation schedule will conform to GAAP or IFRS Accounting Standards. An intangible asset is an asset that cannot be touched. For example Goodwill, Intellectual Property, Patents, Copyrights and Trademarks. When applied to an asset, amortisation is similar to the depreciation of a fixed asset.


Leave a Reply

Your email address will not be published. Required fields are marked *

Warren William

Meet the author behind Smartest-Data. Warren William has a career in Finance and Investments extending over 35 years, both on the Buy Side and Sell Side. His most recent roles include, developing Institutional Risk Management Programs for managing Equity and Fixed Income Risk.  Prior to this Warren William work in Alternative Investments, in Investment Management and as a Buy Side Equity Analyst. Warren William brings a wealth of knowledge and expertise to the table, providing in-depth analysis and commentary on the latest trends in the Stock Markets. Contact information: or Telegram +393339034488

Welcome to

Smartest Data aims to be your go-to source for analysis and commentary on Investments, Personal Finance and the Global Stock Markets. The aim is to provide our readers with insightful and actionable information for independent minded Investors.  Dissecting  the daily avalanche of Data produced by the Stocks Market by using data Websites  and Apps available to people at home. Join us, to be Driven by Data to navigate the Investment universe markets and make better informed investment decisions.