What is the meaning by Amortization and its treatment?

Its simply just depreciation ,but charged to intengible asset........

Amortization simply like depreciation for assets but for intangible assets

For example, ABC International has spent $100,000 to acquire a broadcast license that will expire and be put up for auction in five years. This is an intangible asset, and should be amortized over the five years prior to its expiration date. The entry in each year would be:

  Debit Credit Amortization expense 20,000         Accumulated amortization   20,000

Amortization is a method of allocation of asset and liability to an income statement usually for several years. The treatment will differ based on the type of Balance sheet items will be amortized.

The treatment is much similar to Depreciation and Depletion but the main difference is Depreciation and Depletion only related to asset, whereas a Asset or liability can be amortized. 

 

In simple terms its paying off a liability over a period of time like in installments.

Amortisation is a method of charging income statement (profit & loss account in UK) proportion of capitalised intangible assets according to company's accounting policies. Amortisation is similar to depreciation, only the difference is the terminology "depreciation" usually used in connection with tangible assets. 

Amortization is a type of spreaded payments over multiple periods of time or we can say it is a systematic way of allocating balance sheet itms. It has its formula to treate. Amortization is done for assets and loans mostly and the number of interest being given or taken is nescessary to find out the result