Capitalisation: Difference between revisions
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Instead the debit is to the balance sheet, creating an asset. | Instead the debit is to the balance sheet, creating an asset. | ||
The reason is the expectation that the organisation will enjoy related economic benefits in future accounting periods, after the financial reporting date. | |||
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== See also == | == See also == | ||
* [[Amortisation]] | |||
* [[Assets]] | |||
* [[Basel III]] | * [[Basel III]] | ||
* [[Capital]] | * [[Capital]] | ||
| Line 31: | Line 36: | ||
* [[Capitalise]] | * [[Capitalise]] | ||
* [[Corporate finance]] | * [[Corporate finance]] | ||
* [[Debit]] | |||
* [[Depreciation]] | * [[Depreciation]] | ||
* [[Equity]] | * [[Equity]] | ||
* [[Financial reporting]] | |||
* [[Fixed assets]] | * [[Fixed assets]] | ||
* [[FTSE]] | * [[FTSE]] | ||
* [[Fundamental analysis]] | * [[Fundamental analysis]] | ||
* [[IAS 16]] | * [[IAS 16]] (Tangible assets - Property, plant and equipment) | ||
* [[IAS 38]] | * [[IAS 38]] (Intangible assets) | ||
* [[Impairment]] | * [[Impairment]] | ||
* [[Intangible]] | |||
* [[Intrinsic value]] | * [[Intrinsic value]] | ||
* [[Large-cap]] | * [[Large-cap]] | ||
Latest revision as of 16:22, 27 April 2025
1. Financial accounting.
When a fixed asset is purchased the cost is not debited to the income statement (or profit and loss account).
Instead the debit is to the balance sheet, creating an asset.
The reason is the expectation that the organisation will enjoy related economic benefits in future accounting periods, after the financial reporting date.
2. Market value.
The total market value of a firm's capital.
3. Capital amount.
The adequacy of the amount and nature of an organisation's capital, particularly the capital of a bank.
4. Equity.
The total market value of a listed company's equity.
Sometimes known as the 'equity market capitalisation'.
See also
- Amortisation
- Assets
- Basel III
- Capital
- Capital adequacy
- Capital structure
- Capitalisation factor
- Capitalise
- Corporate finance
- Debit
- Depreciation
- Equity
- Financial reporting
- Fixed assets
- FTSE
- Fundamental analysis
- IAS 16 (Tangible assets - Property, plant and equipment)
- IAS 38 (Intangible assets)
- Impairment
- Intangible
- Intrinsic value
- Large-cap
- Listed company
- Mid-cap
- NOSH
- Recognition
- Re-equitisation
- Revaluation
- Shareholder value
- Small-cap
- Technical analysis
