what is the meaning of capitalisation..?///??
2 Replies
shekhar
(proprietor)
(37 Points)
Replied 11 October 2012
1. One Capitalization is used for Fixed Assets and depend on the nature of expenses i.e. Revenue and Capital. Recognition of capital expenses in books is called Capitlization.
2. Market Capitalization is equal to Net Work of the company i.e. market value per share times outstanding shares.
Rahul Walame
(Chartered Accountant)
(580 Points)
Replied 15 October 2012
CAPITALIZATION CAN ALSO BE INTERPRETED AS TRANSFERRING THE RETAINED EARNIGNS TO THE NET WOTH OF THE COMPANY.THIS IS USUALLY DONE BY THE WAY OF BONUS ISSUE OR RIGHTS ISUE.
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