The calculation formula of amortization amount is usually: amortization amount = initial investment amount/amortization period.
This formula is suitable for calculating the amortization of tangible assets and intangible assets such as fixed assets, land use rights, trademark rights and patent rights. For amortization of fixed assets, initial investment usually refers to the purchase price of fixed assets, while for amortization of intangible assets, initial investment usually refers to the cost of intangible assets. Amortization period refers to the useful life or expected income of an asset.
For example, if a company buys a piece of machinery and equipment with a value of 6.5438+million yuan and the expected service life of the equipment is 6.5438+00 years, the amortization amount of the company is calculated as follows: amortization amount = 6.5438+00 million yuan/654.38+00 years = 6.5438+00 million yuan/year. This means that this company needs to amortize this 654.38 million yuan into its operating costs every year.
In addition, for some assets that need regular maintenance and overhaul, the calculation formula of amortization amount may be different. For example, a company's machinery and equipment needs maintenance and overhaul once a year, and the amortization amount of this company may need to consider the cost of maintenance and overhaul. Therefore, the specific amortization formula needs to be determined according to the specific situation.
In a word, the calculation formula of amortization amount is an important financial management tool, which can help enterprises understand the use cost and income of their assets, so as to make better financial planning and decision.