Abiblo Finance - Capitalisation
The action which involves providing capital for an organisation or company.
Capitalisation also meant the structure of the capital of the organisation or company and the extent to which the capital is divided into loan capital and share capital. The share capital is further divided into ordinary shares and preference shares.
Capitalisation also means the conversion of the reserves of the company by scrip issue into capital.
The act of treating the capital expenditure as a fixed asset in the balance sheet rather than charing it against the profit is also known as capitalisation.