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> Accounting 101, capital items do not count towards profit. Technically yes and no. The initial capital amount does not, but its amount gets depreciated/amort
by mbesto 8y ago
> Accounting 101, capital items do not count towards profit.
Technically yes and no. The initial capital amount does not, but its amount gets depreciated/amortized over time.
- jgamman 8y agooh for a one armed accountant...
- jimnotgym 8y agoSince you want to be technical, we should say that the changes to the value of capital items get charged to the income statement (profit & loss). Capital items only get depreciated if they are wasting, and could indeed be revalued upwards. It is quite common for real property, for instance) to not get depreciated and be held at historical cost, or indeed to be revalued annually.