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capitalize |
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capitalize (1) In finance:(a) To add an expenditure to the basis of property.(b) To provide funding to an enterprise. (c) To book something as an asset and depreciate it rather than writing off the money spent as an expense.(When one “cooks the books”for a business,extensive repairs might be capitalized as improvements in order to make the enterprise appear more valuable than it is in reality.This approach runs counter to the normal taxpayer desire to treat all repairs as expenses in order to gain maximum tax deductions in the current year.) (2) In appraisal,to estimate the present value of an income stream from a business or property. Capitalize To treat the cost of additions and improvements to property as a capital improvement or expenditure. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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In its last filing with the Securities and Exchange Commission, Computer Sciences states that it only capitalizes "fixed assets. When the liability is initially recorded, the entity capitalizes a cost by increasing the carrying amount of the related long-lived asset. Barbara's Outfitters capitalizes certain start-up costs and fully amortizes those costs within the first year of operations. |
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