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amortization |
Also found in: Medical, Legal, Financial, Encyclopedia, Wikipedia, Hutchinson | 0.03 sec. |
amortization, amortizement the paying off of a debt in equal installments composed of gradually changing amounts of principal and interest. See also: Financethe transfer or sale of property in mortmain. See also: Property and Ownership
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| Note: Receipt of cash does not
always represent all of the interest income to be reported for Federal
and state income tax purposes; amortization of bond discount is also
included. Management believes that FFO
is helpful to investors as supplemental performance measures because
these measures exclude the effect of depreciation, amortization and
gains or losses from sales of real estate, all of which are based on
historical costs which implicitly assumes that the value of real estate
diminishes predictably over time. Financing was based on a10 year term with a 20 year amortization. |
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