Abiblo Finance - Capital Gain
Capital gain is the gain on asset's disposal which is calculated by deducting the cost of the asset from the proceeds received on the disposal of the asset. Capital gains are chargeable to corporation tax and adjusted by indexation.
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Abiblo Finance - Capital Expenditure
Capital expenditure is also known as capital costs, investment costs, capital investment and investment procedure. Capital expenditure is an organisation's expenditure for the purchase or improvement of a fixed asset of a significant amount. The amount which is expended would lead the item being depreciated over an estimated useful life of an extended period. Capital expenditure is the investment which need to be capitalized in the balance sheet as fixed asset and subsequently charged against profit by depreciating asset over the estimated useful life. Capital expenditure is not charged against the profit of the organisation. Abiblo Finance - Capital Flight
Capital flight or flight capital is the rapid withdrawal of capital from a country due to the loss of confidence in its government. Abiblo Finance - Capital Employed
Capital employed is the sum of fixed assets of the company and the working capital or the sum of the company's long term debt and shareholders' equity. Capital employed is important component for ratio analysis especially in the calculation of return on capital employed. Capital conversion plan is an annuity which converts capital into income. This policy is used to provide an income later in life for an individual who might be liable to capital gains tax if the person's capital is not reinvested.
Abiblo Finance - Capital Consumption
Capital consumption is a depreciation in the value of the capital goods during a specified period in economy. The amount of capital consumption need to be calculated as the value has to be deducted from gross national product and gross domestic product to obtain the net value. Abiblo Finance - Capital Commitments
Capital commitments also known as commitments for capital expenditure where the board of directors approved the firm plans to spend money on fixed assets. Capital commitments must be indicated in form of note in the company accounts. Abiblo Finance - Capital Budget
Capital budget is the sum allocated for future capital expenditure by an organisation. Capital budget may cover a longer period than the next accounting period. Abiblo Finance - Capital Budgeting
Capital budgeting is the appraisal process conducted by an organization of a range of different investment projects with the aim of determining which is likely to provide highest financial return. Capital budgeting involves the internal rate of return, payback period method, net present value and probability index. Abiblo Finance - Capital At Risk
Capital at risk is a form of measurement of worst case losses in excess of the average which is useful in banking to measure both capital requirements as well as certain performance measures for instance, the risk adjusted return on capital. Capital at risk is based on the methodology of value at risk. Based on the Basle Accords, the calculation of capital at risk is essential to the capital adequacy framework. |
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