What Is Deferred Capital?


2 Answers

Robert Lamp Profile
Robert Lamp answered

Capitalexpenditure is the expenditure the benefit of it not end for the current financial year but it continues for following years. In short , additional amount spending for advertisement will benefit throughout the years not only on specific year.

Steven Vakula Profile
Steven Vakula answered
Deferred Capital is usually in the form of money or like kind item that is recognized on the books of an entity but that has not meet all conditions in order for it to be claimed by the claimant. This can be due to such things as non-completion of a project, the maturity of an item that would release the capital for use or even the delivery of an item that would meet the conditions set for the capitals release. This can also be related to such things as death or even the sale of part of the entity or similar issues that must be completed in order for the entity to realize the capital item as a future event has not occurred. This is not related to the recognition of the item as being part of current income of the entity. The company may have to record the item as being for example current income but the receipt of the income while recorded on the books is not actually deposited into the operating account but is place in the deferral account until the conditions or circumstances are fulfilled for the capitals actual receipt or release to the entity.

Answer Question