an expenditure by a business that is Capitalized to the Balance Sheet under the rules of GAAP and then Amortized as an Income Statement expense over a period of more than one year rather than being immediately “expensed” to the Income Statement in full in the current period. A Capital Expenditure is distinguished from a current expense because it has a long-term impact that will benefit the business in future years as well as the current year.
Buying vegetables for dinner is probably a current expense. Buying a vegetable farm is probably a Capital Expenditure. See Amortization and Capitalize.
Latham & Watkins is pleased to provide our Book of Jargon® — Hedge Funds. The Book of Jargon® — Hedge Funds
is a comprehensive glossary of hedge fund slang, legal and regulatory terminology, and acronyms.
For more information please visit: www.lw.com