amortized cost

Definition

An accounting technique for handling bonds and other limited-term intangible assets. The amortized cost of a bond is gradually reduced on successive balance sheets, treating the bond discount as an asset until the point at which the bond matures.

Use amortized cost in a sentence

I wanted to know the amortized cost, because it was an important fact to know for me and my partner.

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I wanted to pay off the bond with a regular payment schedule, so I verified with my accounted the amortized cost.

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A portion of the purchase price of XYZ Corporation was allocated to goodwill and treated as amortized cost for financial accounting purposes.

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