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 Chapter 3 Earnings and Chapter 9 Margin analysis: Structure of the Vernimmen)

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