Meaning of capitalisation in accounting

Define Capitalization Adjustment. means any change that is made in, or other events that occur with respect to, the Common Stock subject to the Plan or subject to any Stock Award after the Adoption Date without the receipt of consideration by the Company through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, large ...

A capitalization is the sum of the total share capital issued by a company. The company's market capitalization has fallen from $650 million to less than $60 million. The venture will have initial capitalization of one billion yen and will spend 15 billion yen to build the plant. The market capitalization is calculated by multiplying the shares outstanding by the price per share. Market capitalization is one of the basic measures of a publicly-traded company; it is a way of determining the rough value of a company. Generally speaking, a higher market capitalization indicates a more valuable company.

"Capitalizing" a cost allows a business to report that cost as an asset rather than an expense. Not only does this boost the company's value by putting more assets on its balance sheet, it also boosts the company's profit by reducing expenses. Corporate financial accounting follows U.S. generally accepted accounting principles, or GAAP. over capitalization: Situation where a firm has more capital than it catered-for or needs. Thus, its assets are worth less than its issued share capital, and the earnings are insufficient to pay dividend and interest. This situation is remedied generally by buying back issued shares (stock) or by paying off debt.

Examples and definition of Capitalization. In writing, capitalization is the use of capital letters as a type of punctuation. When we say that something is “capitalized,” it means that the first letter of the word or words is a capital (i.e. capital A versus lowercase a). Jul 23, 2013 · Capitalization Rate. Capitalization in Finance. In finance, capitalization in finance is the sum of a company’s debt and equity. It represents the capital invested in the company, including bonds and stocks. Capitalization can also mean market capitalization. Market capitalization is the value of a company’s outstanding shares of stock. Define Capitalization Adjustment. means any change that is made in, or other events that occur with respect to, the Common Stock subject to the Plan or subject to any Stock Award after the Adoption Date without the receipt of consideration by the Company through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, large ... 2. Modern Concept of Capitalisation: . Though the narrower interpretation of capitalisation is more popular because of its being very specific in the meaning, the modern thinkers consider that even short-term creditors should be included in capitalisation. Capitalization is an accounting method in which a cost is included in the value of an asset and expensed over the useful life of that asset.