Search results
Results From The WOW.Com Content Network
Capital expenditures are the funds used to acquire or upgrade a company's fixed assets, such as expenditures towards property, plant, or equipment (PP&E). [3] In the case when a capital expenditure constitutes a major financial decision for a company, the expenditure must be formalized at an annual shareholders meeting or a special meeting of the Board of Directors.
A Capital Commitment, Committed Capital or simply Commitment, is the agreed capital a General Partner can request (or draw down) from a Limited Partner. When an investor buys into a Private equity fund , the agreement specifies the total amount the investor commit to the fund.
Typically, unfunded commitments are separated into two categories: Multiple Advance, Closed End: This type of loan (typically a construction loan) advances incremental amounts up to a certain limit, based upon some criteria such as inspection and approval of a draw request.
Capital expenditures either create cost basis or add to a preexisting cost basis and cannot be deducted in the year the taxpayer pays or incurs the expenditure. [3] In terms of its accounting treatment, an expense is recorded immediately and impacts directly the income statement of the company, reducing its net profit.
Capital budgeting in corporate finance, corporate planning and accounting is an area of capital management that concerns the planning process used to determine whether an organization's long term capital investments such as new machinery, replacement of machinery, new plants, new products, and research development projects are worth the funding of cash through the firm's capitalization ...
Oil and gas behemoth ExxonMobil upset the market on March 5 when it told analysts it would cut spending this year. The news was not well-received, and the company's shares fell hard on the day of ...
Unfunded commitments An investor's commitment to a private-equity fund is satisfied over time as the general partner makes capital calls on the investor. If a private-equity firm cannot find suitable investment opportunities, it will not draw on an investor's commitment, and an investor may potentially invest less than expected or committed. [4 ...
Budgeting is only the first step. Sticking to your budget is often more difficult than creating a budget since it requires making lifestyle adjustments and having a certain degree of self-control.