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Amortisation

The same idea as depreciation, for things you can't touch: software, patents, licences. Their cost is spread over the years they're useful.

You'll hear it as

We're amortising the platform build over five years.

Why it matters to you.

Some companies count engineering time on new products as an asset and amortise it. That's capex, and it's why finance sometimes asks you to log time against projects.

Related terms.

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