capitalized value

Related Overviews


More Like This

Show all results sharing these subjects:

  • Financial Institutions and Services
  • Accounting


Quick Reference

1 The value at which an asset has been recorded in the balance sheet of a company or other organization, usually before the deduction of depreciation.

2 The capital equivalent of an asset that yields a regular income, calculated at the prevailing rate of interest. For example, a piece of land bringing in an annual income of £1000, when the prevailing interest rate is 10%, would have a notional capitalized value of £10,000 (i.e. £1000/0.1). This may not reflect its true value.

Subjects: Financial Institutions and Services — Accounting.

Reference entries