capital expenditure

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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.

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.

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.
References in periodicals archive ?
However, because capital cost is on average much smaller than operating cost, the actual number of dollars redistributed would be expected to be smaller than in the case of operating cost.
Class 34 requires certification by the Minister of Energy, Mines and Resources of certain energy projects cost eligibility for accelerated capital cost allowance.
India ($1,080/kW - $1,250/kW) and China ($1,360/kW C 1,370/kW) show the lowest capital costs and the USA ($1,830/kW) and Brazil ($1,670/kW) the highest.
They are too expensive to build, so we set out in our program to attack the capital costs," Fletcher added.
Selective processes can dramatically improve the value of the resources, and improved operational methods can significantly reduce the complexity and capital costs required.
Doug Belanger, President, stated, "We are pleased that the new capital cost estimate reflects a less than 16 percent increase while the industry as a whole has experienced capital cost increases of approximately 20 to 25 percent over the last 18 months.
However, actual LEED-associated capital costs, long-term savings and other benefits can only be determined on a case-by-case basis.
To see the impact an SPS system can have on the TCO of storage and protection, we'll first review first year capital costs and then consider the operational costs savings of an SPS system.
of Edmonton, is preparing the pre-feasibility report due out in mid-January, and pegs the estimated capital costs to run infrastructure into the Shania Twain Centre at between $200,000 and $250,000.
The distinction between deductible repairs and capital costs is based on the purpose of the expenditures: the purpose of a repair is to restore property back to an efficient operating condition, while the purpose of capital expenditures is to extend the property's life, increase its value or make it adaptable to a new use.
As a fully managed service, ScanSafe's solutions require no hardware, no upfront capital costs and no maintenance.

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