 |
The term capital asset has three unrelated technical definitions, and is also used in a variety of non-technical ways.
- In financial economics, it refers to any asset used to make money, as opposed to assets used for personal enjoyment or consumption. This is an important distinction because two people can disagree sharply about the value of personal assets, one person might think a sports car is more valuable than a pickup truck, another person might have the opposite taste. But if an asset is held for the purpose of making money, taste has nothing to do with it, only differences of opinion about how much money the asset will produce. With the further assumption that people agree on the probability distribution of future cash flows, it is possible to have an objective Capital asset pricing model. Even without the assumption of agreement, it is possible to set rational limits on capital asset value.[1]
- In governmental accounting, it is defined as any asset used in operations with an initial useful life extending beyond one reporting period.[2] Generally, government managers have a 'stewardship' duty to maintain capital assets under their control. See International Public Sector Accounting Standards for details.
- In US tax accounting, it is defined as any property other than a list of exceptions. The main exceptions are anything held for sale, and any real estate or depreciable property used in business.[3] Almost everything you own and use for personal purposes, pleasure or investment is a capital asset. If something is a capital asset for tax purposes, gains or losses on sale or disposition are capital gains or capital losses. For individuals, however, capital losses on property held for personal use are generally not deductible. See the IRS publication Tax Facts about Capital Gains and Losses for details.
Non-technical and ambiguous usage
A well-known financial accounting textbook[4] advises that the term be avoided except in tax accounting because it is used in so many different senses, not all of them well-defined. For example it is often used as a synonym for fixed assets[5] or for investments in securities.[4]
A common non-technical usage occurs when people ask that employees or the environment or something else be treated as a capital asset. In this context it means something managers have a responsibility to maintain, and to report changes in value as gains or losses.[6]
Capital assets should not be confused with the capital a financial institution is required to hold. This capital is computed from the right-hand side of the balance sheet while assets are found on the left-hand side. [4]
References
- ^ Eugene F. Fama and Merton H. Miller, The Theory of Finance, Holt Rinehart and Winston (1974).
- ^ Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, paragraph 19.
- ^ Internal Revenue Code Subchapter P, Section 1221, Capital Asset Defined.
- ^ a b c Clyde P. Stickney and Roman L. Weil, Financial Accounting, p. 622.
- ^ John Owen Edward Clark, Dictionary of International Accounting Terms, p. 98
- ^ David F. Robinson, 'Human asset accounting', Long Range Planning, v. 7, i. 1, February 1974, Pp. 58-60.
Article is licensed under GNU Free Documentation License.
It uses material from Wikipedia.org Original article is here.
Capital_asset - Live Search NotizieRisultati della ricerca
Yahoo! News Search Results for Capital_asset
Market backs new Rupert venture (News 24 South Africa)The market has given a thumbs-up to a transaction between Reinet and failed investment banker Lehman Brothers.
A piece of Salem history relocates (Boston Globe)How do you move a 1,100-ton, 202-year-old brick church? Very, very slowly, according to moving experts who helped design a plan to move the former First Baptist Church 180 feet last weekend in Salem.
Businessman gives mortgage proposal (Orlando Sentinel)Billionaire businessman Robert L. Johnson talked about his proposal to help solve the mortgage crisis Wednesday, as the chairman of Lake Mary-based Urban Trust Bank was in Central Florida for meetings.
CyberShift And SDI Announce Partnership (RetailSolutionsOnline)CyberShift, a leading global provider of workforce management and expense management software and services, recently announced a partnership with Chicago-based SDI (System Development Integration, LLC), a systems integrator that specializes in the public sector, aviation and other industries involved in the management of the safety, security and surveillance of people and operations.
City to take over Powder House (The Daily News of Newburyport)NEWBURYPORT and mdash; The city will officially have control of the Powder House on Low Street, once again, after the governor signed legislation that allows Newburyport to sign a deal and take over a lease of the building.
Trial court work moving on schedule (The Taunton Gazette) Despite the snow, sleet and rain, construction of the new Taunton Trial Court complex downtown is proceeding on schedule.
Council vote expected on tree nursery (This Week Bexley)Bexley City Council members will vote on an offer to sell the 2.8-acre tree nursery site in north Bexley when they meet at 7 p.m. Jan. 13, Mayor John Brennan said.
CyberShift and SDI Announce Partnership (Marketwire via Yahoo! Finance) CyberShift, a leading global provider of workforce management and expense management software and services, today announced a partnership with Chicago-based SDI, a systems integrator that specializes in the public sector, aviation and other industries involved in the management of the safety, security and surveillance of people and operations.
Shanghai Pudong Bank 2008 Net Profit More Than Doubles (Fox News)Shanghai Pudong Bank 2008 Net Profit More Than Doubles
Beijing Says House Prices Too High, Urges Moderation (Fox News)Beijing Says House Prices Too High, Urges Moderation
Live Search: Capital_assetRisultati della ricerca
Il modello di Capital Asset Pricing - AssogestioniIl modello di Capital Asset Pricing. Il rendimento atteso di un investimento e il relativo premio al rischio: un modello di calcolo. Introduzione
LUIGI G. ZINGALESLUIGI G. ZINGALES Born in Padova on February 8, 1963 Luigi Zingales is the Robert C. McCormack Professor of Entrepreneurship and Finance at the Graduate School of Business of the ...
Capital asset pricing model - WikipediaIl Capital Asset Pricing Model (brevemente, CAPM) è un modello di equilibrio dei mercati finanziari, proposto da William Sharpe in uno storico contributo nel 1964, e ...
Bison Capital Asset Management, LLC
Capital asset pricing model - WikipediaIl Capital Asset Pricing Model (brevemente, CAPM) è un modello di equilibrio dei mercati finanziari, proposto da William Sharpe in uno storico contributo nel 1964, e ...
Capital Asset Recovery Auction
Capital asset - Wikipedia, the free encyclopediaCapital asset has two related meanings in the fields of accounting and financial economics. In accounting, a capital asset is an asset that is recorded on a balance sheet as ...
CAPM - Capital Asset Pricing ModelSommario, forum, suggerimenti e spiegazione completa di CAPM - Capital Asset Pricing Model. Stimare azioni, obbligazioni, derivati e/o attività, mettendo in relazione rischio e ...
Capital Asset - Commodity Trading Specialist in Gold and Silver ... Precious Metal Dealers featuring Commodity Trading as well as Gold Investments and Silver Investments of all kinds
Capital AssetHow it Works; Capital Asset trades precious and industrial metals with major commodities dealers around the globe. We trade actual physical commodities, rather than the futures or ...
