Capitalization

Identifying major cost as capital, even though no asset is purchased. This is done to spread the impact of the cost over multiple accounting periods. The most common example of this is software development, or purchase of a software licence.


Capitalization

Identifying major cost as capital, even though no asset is purchased. This is done to spread the impact of the cost over multiple accounting periods. The most common example of this is software development, or purchase of a software licence.

Used in methodology