capital expenditure


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Related to capital expenditure: Capital Expenditure Budget

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 ?
Best Buy's capital expenditures came in about $150 million below plan last year because the company chose to delay remodels so that they would be timed with the introduction of customer-centric stores, Dunn said.
In its brief in INDOPCO, the government acknowledged that section 195 recognizes that "expenditures incurred in carrying on or expanding an existing business generally are deductible under Section 162(a), while expenditures incurred in creating a new business and expenditures incurred by a going concern in entering a new line of business are capital expenditures.
Information on capital expenditure by company type - national oil companies, integrated and independent companies.
5 (in suit for income and corpus of trust, settlement costs could be allocated between deductible expenditures relating to income and capital expenditures relating to defense of title).
For these reasons, the costs incurred were held nondeductible capital expenditures.
The IRS's principal contention was that the takeover-related expenses constituted nondeductible capital expenditures.
Information on capital expenditure by region North America, Asia-Pacific, South and Central America, Africa and the Middle East, and Europe.
SEC regulations require companies not only to reveal their status as defendants in pending administrative or judicial proceedings but also to gauge whether a known but unrevealed-environmental condition is reasonably likely to have a material effect on future capital expenditures.
Corporate Capital Expenditure Study: Modest Growth in 2010 and 2011', addresses the trend of capital expenditure for Fitch's rated U.
The courts generally have relied on one or more of the following factors to distinguish between capital expenditures and repairs.
On this basis, because a stock redemption is inherently a capital transaction, its costs are capital expenditures without taking into consideration the motives underlying the transaction.
com/research/b5d44d/global_oil_and_gas) has announced the addition of GlobalData's new report "Global Oil and Gas Capital Expenditure Outlook - 2010: National Oil Companies (NOCs) to Drive Investment" to their offering.

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