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what is the difference between

Hi Sir,

May I know what is the difference between "Amortization and Deprection"?

2 Answer(s)


Depreciation is used for tangible assets such as machinery, equipment etc

Amortization is used for intangible assets like Intellectual property.

In both cases these methods are used to split the expense made on the assets into different time periods based on the value accrued from the asset.


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