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What is the difference between depreciation and amortization?

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Question added by Muhammad Hanif Kasbati , Chief Financial Officer and Company Secretary , Pakistan Textile City Limited
Date Posted: 2016/03/02
Majid Abdulrahman Mohammed  Al-Thorah
by Majid Abdulrahman Mohammed Al-Thorah , Senior Auditor , Grant Thornton

Amortization is the decrease in value of an intangible asset or assets over time (as percentage) for (Copyrights, fame, brands, etc...).

While depreciation is the decrease in value of a tangible assets or assets over time (as percentage) for (Buildings, Machines, Furniture, etc...).

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