Difference Between Accumulated Amortization And Amortization Expense

1. Accumulated Amortization is the total of Amortization Expense charged on Intangible Non Current Assets at a Amortization Rate Under Different Amortization Methods i.e., Straight Line Method, etc., in the previous Accounting Periods while Amortization Expense is charged on the Current Accounting Period and closed to Income Statement at the end of Accounting Period.

2. Accumulated Amortization is a Contra Asset Account which is deducted from relevant Intangible Asses on Balance Sheet while Amortization is an Expense Account and closed by transferring to Income Statement / Profit And Loss Account at the end of Accounting Period.

So, it is all about Accumulated Amortization Versus Amortization Expense in Accounting.