Capital Expenditure

Payments made in cash or cash equivalents over a period of more than one year. Capital expenditures are used to acquire assets or improve the useful life of existing assets. An example of a capital expenditure is the funding to construct a factory. In accounting, capital expenditures must be capitalized; that is, the expenditure is recognized on a balance sheet gradually over the course of an asset's useful life. Capital expenditures are recorded as liabilities on a balance sheet. They are also called capital outlays. See also: Capital asset.

capital expenditure

Funds used to acquire a long-term asset. A capital expenditure results in depreciation deductions over the life of the acquired asset. Also called capital outlay.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

capital expenditure

expenditure on the acquisition or improvement of FIXED ASSETS that is subsequently written off against profits over several ACCOUNTING PERIODS. Contrast with REVENUE EXPENDITURE. See INVESTMENT, CAPITAL BUDGETING.

capital expenditure

see INVESTMENT.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

capital expenditure

Money spent on capital improvements,being those that change the nature of property, extend its useful life, or otherwise improve it beyond the natural improvement to be expected with routine repairs and maintenance.This is an important concept because capital expenditures must be added to the basis and depreciated slowly over time,while noncapital expenditures for repairs may be deducted entirely in the current year on one's taxes.

Capital Expenditure

An expenditure made for an asset with a useful life of more than one year that increases the value of or extends the useful life of the asset. Capital expenditures generally may not be deducted in the year they are paid, even if they are paid in connection with a trade or business. In other words, they are capitalized and generally may be depreciated or amortized.

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References in periodicals archive

No direct mining capital costs are outlined, as infrastructure to support the mining operations is included in the infrastructure numbers, there is no pre-strip required and mining costs are based direct supplier quotes from a number of mining contractors with all mobile equipment costs included in the operating cost estimation received.

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In the confidence level %95, there is not liner relationship between the percentage of methods of financing variables (Debts, capital, and retained earnings) and growth rate of capital cost. (Chart number 1).

Check of the relationship between financing methods and the changes in investment in listed companies in Tehran Stock Exchanges

District cooling has the least capital cost and attains all three points whilst the water cooled option is the most expensive and therefore receives one point.

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Most commercial office leases do not permit building owners to pass through capital costs to their tenants.

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The new machine is claimed to offer 2.5 times the output of a dual-accumulator machine at only 1.5 times the capital cost. The first machine has been sold for a lawn-and-garden application.

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Traditionally, capital equipment cost justification involved ROI analysis that would compare projected cost savings to capital cost. The accounting profession has done an admirable job of creating discounted cash flow models, depreciation tools and tax implication scenarios.

Recognizing the real cost of equipment ownership: a new model for comparing inline aqueous cleaning systems has yielded annual six-figure savings

The capital cost allowance was great; it was a great opportunity.

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He said the trust should also explain the actual capital cost of the project, as well as the amount of the annual repayments the NHS will have to find.

Fears at rising hospital costs; MP and councillor hit out at delays and secrecy

The joint venture led by the Rio Tinto group is to proceed with the development of the Hail Creek coking-coal mine, 85 km west of Mackay in central Queensland, at a capital cost of A$425 million.

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It has been 20 years since capital cost recovery rules have been updated, even though much of the high-tech equipment--such as computers, software, and advanced technology manufacturing equipment--is outdated almost as quickly as it is installed.

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* Reducing Capital Costs of Nuclear Power PlantsA new report from the OECD Nuclear Energy Agency (NEA) analyses various means of reducing the capital cost of nuclear power plants in order to maximise their economic potential versus less capital-intensive energy production sources.

NEW PUBLICATION

Capital cost per daily barrel in Iraq is the lowest in the world, due to the existence of infrastructure, spare production capacity and proximity to storage and transportation facilities.

IRAQ - Costs