Capital employed and Commutation: Difference between pages

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An accounting measure of the total value of resources available to management for use in the business.
''Pensions''.
 
The foregoing of part or all of the pension payable from retirement in exchange for an immediate lump sum benefit.
 
In some countries there may be a tax benefit to partial commutation. (Under UK tax rules, up to 25% for example, of the value of a pension may be taken in the form of a tax free lump sum.)
In simple terms, it is defined as:
 
Equity + Debt
 
''or''  
 
Equity + Non-current liabilities
 
 
The detailed definition can vary in different contexts.
 
For this reason it is important to be clear about it, and to state it expressly.
 
 


== See also ==
== See also ==
* [[Capital market]]
* [[Lump sum]]
* [[Capital structure]]
* [[Debt]]
* [[Equity]]
* [[Non-current liabilities]]
* [[Return on capital employed]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Intercompany_funding]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Financial_products_and_markets]]

Revision as of 14:19, 23 October 2012

Pensions. The foregoing of part or all of the pension payable from retirement in exchange for an immediate lump sum benefit. In some countries there may be a tax benefit to partial commutation. (Under UK tax rules, up to 25% for example, of the value of a pension may be taken in the form of a tax free lump sum.)

See also