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 ?
Capital expenditures are a critical part of hospitals' efforts to maintain quality of patient care and financial stability.
(2012) examined the impact of capital expenditure on working capital management of Pakistani cement, sugar, and energy sector industries during the period 2004 to 2010.
However, this is likely to be an underestimate, as capital expenditure is dispersed widely across governmental and quasi-governmental agencies in the seven emirates.
Growth in capital expenditure and exports helped mask a decline in private consumption, which turned lower for the first time in five quarters.
"We believe using it for capital expenditure would be the correct course of action."
The company has declared a 2012 capital expenditure budget of USD45m to USD49m, which assumes the drilling of around 14 to 15 gross wells.
On the other hand, any additional debt-funded capital expenditure by the company or a drop in its EBITDA margins prompting a rise in its debt/ EBITDA to above 3.5x would translate into a negative rating action.
In another move, Corning has approved a capital expenditure plan to increase manufacturing capacity in the company s Environmental Technologies and Life Sciences segments in China.
Since April, 2008, businesses of any size have been entitled to claim an AIA of up to pounds 50,000 on most capital expenditure, which will give them a 100% tax write-off against profits.
HSBC Holdings (LSE: HSBA) has said that its survey has indicated that most SMEs (small and medium enterprises) in Qatar would need higher capital expenditure.
Summary: Saudi Arabia's Dar al-Arkan Real Estate will use the proceeds of an Islamic bond issue to help finance 2.7 billion riyals of ($720 million) capital expenditure during 2010, a prospectus for investors showed on Monday.Aa"Management expects Dar to make a total of 2.7 billion riyals of capital expenditures during 2010 principally related to development of the Al-Qasr and Shams Ar-Riyadh master-planned communities," the prospectus said.
(TSMC) would likely increase capital expenditure for this year to US$2 billion in light of the company's impressive spending of US$700 million on equipment so far this year.

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