Definition for : Depreciation and amortisation
The loss in Value of a fixed asset due to its use by the company is accounted for by means of depreciation and Amortisation. Depreciation pertains to tangible Assets, Amortisation to intangible Assets. Depreciation and Amortisation are so-called "non-cash" Charges insofar as they merely reflect arbitrary accounting assessments of the loss in Value.
(See Chapters 3 and 9 of the Vernimmen)
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