Amortisation (amortizācija)
In Latvian: Amortizācija
Amortisation (amortizācija) is the gradual write-off of the value of an asset to expense over its useful life. In Latvian the word is used both for writing down intangible assets and, loosely, as a synonym for depreciation of fixed assets.
The Law on Annual Statements and Consolidated Annual Statements does not use the word at all. It calls the write-off of fixed assets "nolietojums" (depreciation) and of intangible assets "vērtības norakstīšana" (write-down of value), and groups both as value adjustments, shown as one line in the profit or loss account.
An intangible asset is written off over its useful life. Where the useful life of goodwill or development costs cannot be estimated reliably, they are written off over no more than 10 years, explained in the notes.
The A in EBITDA is amortisation: earnings before interest, taxes, depreciation and amortisation.
Example
In January 2026 SIA "Ozols" buys a software licence for EUR 3,600 to use for three years. With straight-line write-off in its accounting policy, amortisation is EUR 1,200 a year, and the licence is carried at EUR 2,400 at the end of 2026.
Legal basis
- Law on Annual Statements and Consolidated Annual Statements, Section 23 likumi.lv
- Law on Annual Statements and Consolidated Annual Statements, Section 31 likumi.lv
- Latvian National Terminology Portal: amortizācija termini.gov.lv
This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.