Contents 1 Excluded from the definition of capital assets 2 Specific common definitions 3 US tax definition versus broader economic definition 4 See also 5 References


Excluded from the definition of capital assets[edit] This section needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (April 2016) (Learn how and when to remove this template message) The examples and perspective in this section may not represent a worldwide view of the subject. You may improve this article, discuss the issue on the talk page, or create a new article, as appropriate. (March 2014) (Learn how and when to remove this template message) Any stock in trade, consumable stores, or raw materials held for the purpose of business or profession have been excluded from the definition of capital assets. Any movable property (excluding jewellery made out of gold, silver, precious stones, and drawing, paintings, sculptures, archeological collections, dinosaur bones, etc.) used for personal use by the assessee or any member (dependent) of assessee’s family is not treated as capital assets. For example, wearing apparel, furniture, car or scooter, TV, refrigerator, musical instruments, gun, revolver, generator, etc. is the examples of personal effects. (But see IRS publication 544 chapter 2.) Agricultural land situated in rural area. 6.5% gold bonds or 7% gold bonds 1980, national defense gold bond 1980, issued by the central government. Special bearded bonds, 1991 Gold deposit bonds issued under gold deposit scheme, 1999.


Specific common definitions[edit] In financial economics, capital 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, or with reference to public capital or infrastructure usually managed by government, a capital asset 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. See Triple bottom line for widely used public sector accounting methods in which natural capital and social capital are characterized not as intangibles or externalities but as actual capital assets. In some income tax systems (for example, in the United States), gains and losses from capital assets are treated differently than other income. Sale of non-capital assets, such as inventory or stock of goods held for sale, generally is taxed in the same manner as other income. Capital assets generally include those assets outside the daily scope of business operations, such as investment or personal assets. The United States system defines a capital asset by exclusion.[3] Capital assets include all assets except inventory of supplies or property held for sale (including subdivided real estate), depreciable property used in a business, accounts or notes receivable, certain commodities derivatives and hedging items, and certain copyrights and similar property held by the creator of the property. The United Kingdom has an even broader definition.[4]


US tax definition versus broader economic definition[edit] A well-known financial accounting textbook[5] 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[6] or for investments in securities.[5] However this advice is questionable beyond the US private context. Several public sector standards in global use, notably triple bottom line accounting as defined by ICLEI for world cities, require 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.[7] See human capital, natural capital, triple bottom line, human development theory. 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.[5] See Basel III for a summary of how such requirements are proposed to be calculated.


See also[edit] Current assets


References[edit] ^ 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. ^ 26 USC 1221. Also see the discussion of capital gains and losses in IRS Publication 550. ^ See HMRC discussion of assets liable to capital gains tax. ^ 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. Retrieved from "https://en.wikipedia.org/w/index.php?title=Capital_asset&oldid=817449633" Categories: AssetFinancial economicsTaxation in the United StatesTax termsCapital (economics)Hidden categories: Articles needing additional references from April 2016All articles needing additional referencesArticles with limited geographic scope from March 2014


Navigation menu Personal tools Not logged inTalkContributionsCreate accountLog in Namespaces ArticleTalk Variants Views ReadEditView history More Search Navigation Main pageContentsFeatured contentCurrent eventsRandom articleDonate to WikipediaWikipedia store Interaction HelpAbout WikipediaCommunity portalRecent changesContact page Tools What links hereRelated changesUpload fileSpecial pagesPermanent linkPage informationWikidata itemCite this page Print/export Create a bookDownload as PDFPrintable version Languages Azərbaycanca Edit links This page was last edited on 28 December 2017, at 12:58. Text is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization. Privacy policy About Wikipedia Disclaimers Contact Wikipedia Developers Cookie statement Mobile view (window.RLQ=window.RLQ||[]).push(function(){mw.config.set({"wgPageParseReport":{"limitreport":{"cputime":"0.056","walltime":"0.087","ppvisitednodes":{"value":369,"limit":1000000},"ppgeneratednodes":{"value":0,"limit":1500000},"postexpandincludesize":{"value":10015,"limit":2097152},"templateargumentsize":{"value":168,"limit":2097152},"expansiondepth":{"value":9,"limit":40},"expensivefunctioncount":{"value":2,"limit":500},"entityaccesscount":{"value":0,"limit":400},"timingprofile":["100.00% 66.351 1 -total"," 69.20% 45.916 1 Template:+rs"," 46.01% 30.531 1 Template:Refimprove"," 45.96% 30.498 2 Template:Ambox"," 14.78% 9.806 1 Template:Reflist"," 8.67% 5.751 1 Template:Globalize"," 1.95% 1.291 1 Template:Main_other"]},"scribunto":{"limitreport-timeusage":{"value":"0.018","limit":"10.000"},"limitreport-memusage":{"value":1087887,"limit":52428800}},"cachereport":{"origin":"mw1252","timestamp":"20180109011656","ttl":1900800,"transientcontent":false}}});});(window.RLQ=window.RLQ||[]).push(function(){mw.config.set({"wgBackendResponseTime":79,"wgHostname":"mw1329"});});


Capital_asset - Photos and All Basic Informations

Capital_asset More Links

TangibleIntangible AssetJewelleryGoodwill (accounting)PatentsTrademarksSharesDebenturesSecuritiesMutual FundsZero-coupon BondWikipedia:VerifiabilityHelp:Introduction To Referencing With Wiki Markup/1Help:Maintenance Template RemovalWikipedia:WikiProject Countering Systemic BiasTalk:Capital AssetWikipedia:Article WizardHelp:Maintenance Template RemovalFinancial EconomicsCapital (economics)AssetCapital Asset Pricing ModelPublic CapitalInfrastructureInternational Public Sector Accounting StandardsTriple Bottom LineNatural CapitalSocial CapitalIntangible AssetExternalitiesCapital Gains TaxNotes ReceivableFinancial AccountancyTax Accounting In The United StatesFixed AssetsSecurity (finance)Triple Bottom LineICLEIHuman CapitalNatural CapitalTriple Bottom LineHuman Development TheoryCapital RequirementCapital RequirementBalance SheetAssetBasel IIICurrent AssetRoman L. WeilHelp:CategoryCategory:AssetCategory:Financial EconomicsCategory:Taxation In The United StatesCategory:Tax TermsCategory:Capital (economics)Category:Articles Needing Additional References From April 2016Category:All Articles Needing Additional ReferencesCategory:Articles With Limited Geographic Scope From March 2014Discussion About Edits From This IP Address [n]A List Of Edits Made From This IP Address [y]View The Content Page [c]Discussion About The Content Page [t]Edit This Page [e]Visit The Main Page [z]Guides To Browsing WikipediaFeatured Content – The Best Of WikipediaFind Background Information On Current EventsLoad A Random Article [x]Guidance On How To Use And Edit WikipediaFind Out About WikipediaAbout The Project, What You Can Do, Where To Find ThingsA List Of Recent Changes In The Wiki [r]List Of All English Wikipedia Pages Containing Links To This Page [j]Recent Changes In Pages Linked From This Page [k]Upload Files [u]A List Of All Special Pages [q]Wikipedia:AboutWikipedia:General Disclaimer



view link view link view link view link view link