Capital expenditures

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Capital expenditures

Amount used during a particular period to acquire or improve long-term assets such as property, plant, or equipment.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Increasingly, INDOPCO issues derive from expenditures pertaining to normal, day-today operating expenses that have been challenged and reclassified by revenue agents as capital expenditures. Typically, such day-to-day operating expenses are reviewed for proper tax treatment only during the course of the taxpayer's return-preparation process.
Rather, the capital expenditure is simply added to the taxpayer's basis in the land.
Table: 2.--Revisions to Capital Expenditure Estimates, 1984-85
In preparing the management's discussion and analysis (MD&A) under item 303 of regulation S-K, CPAS need to consider environmental risks'impact on a company's financial position, earnings trend, liquidity and capital expenditure commitments.
The regulation continues that "amounts paid or incurred for repairs and maintenance are not capital expenditures." In addition, the cost of acquisition, construction, or erection of buildings, machinery and equipment, furniture and fixtures, and similar property having a useful life substantially beyond the taxable year is specifically defined as capital in nature by Treas.
Operating expenses in the annual comparison decreased by 4.7 percent, capital expenditures increased by 30 percent.
LAHORE -- A bourse notification filed by Engro Polymer and Chemicals revealed its board of directors approved a capital expenditure of Rs10.3 billion for addition of new PVC Plant and various other projects.
To obtain a more informative measure when calculating capital expenditures, users should include what is spent to acquire land, building, and other capital assets--even if obtained via a business combination.
The 8.3 percent gain in 2015 capital expenditures was strong, coming in light of a 3.1 percent estimate in May.
Capital expenditures are a critical part of hospitals' efforts to maintain quality of patient care and financial stability.

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