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amortization

   Also found in: Dictionary/thesaurus, Legal, Financial, Encyclopedia, Wikipedia, Hutchinson 0.07 sec.
amortization,
n a generic term that includes various specific practices, such as depreciation, depletion, write-off of intangibles, prepaid expenses, and deferred charges.


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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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