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Differences between amortization and capitalization?

  
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Subject Author Date
Differences between amortization and capitalization? Brablo 01-31-2007
Posted by Brablo on January 31, 2007, 8:21 pm
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 I'm under the impression that only differences are that amortization
does not involve an interest portion and equity portion. Instead,
items such as depreciation, are amortized as an expense every year.

On the other hand, capitalization involves an annuity chart, an
interest rate, and a schedule. The equity portion and the interest
portion are recorded.


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