today I want to write a short note about Depreciation and Amortization and whati is the difference between both.
So both of them reflect information about loosing value of some non current asset. If company bought something for one price, and with time that something looses it's value.
What the difference?
Depreciation is connected to tangible asset.
Amortization is connected to intangible asset.
For example loosing of value of laptop is characterized by depreciation.
Loosing of value of software is characterized by amortization.