Appraisal Capital

AAA

DEFINITION of 'Appraisal Capital'

A form of accounting adjustment. Appraisal capital is created when the appraised value of a company's asset exceeds its book value. The difference between the two values is debited against the actual asset and then credited to an equity account belonging to the stockholders.

INVESTOPEDIA EXPLAINS 'Appraisal Capital'

Appraisal capital is quite rarely seen in the United States and is much more commonly done in other countries as a form of writeup. The excess value created by the appraisal is what creates the actual capital involved.

RELATED TERMS
  1. Capital

    1) Financial assets or the financial value of assets, such as ...
  2. Appraisal Approach

    A procedure for determining an asset's value. The appraisal approach ...
  3. Appraisal

    A valuation of property (ie. real estate, a business, an antique) ...
  4. Appraisal Ratio

    A ratio used to measure the quality of a fund's investment picking ...
  5. Appraisal Right

    The statutory right of a corporation's minority shareholders ...
  6. Write-Up

    An increase made to the book value of an asset, because its carrying ...
Related Articles
  1. Understanding FHA Home Loans
    Retirement

    Understanding FHA Home Loans

  2. Add Some Real Estate To Your Portfolio
    Mutual Funds & ETFs

    Add Some Real Estate To Your Portfolio

  3. Condo Complications: The Issues Behind ...
    Home & Auto

    Condo Complications: The Issues Behind ...

  4. 10 Tips For Getting A Fair Price On ...
    Home & Auto

    10 Tips For Getting A Fair Price On ...

comments powered by Disqus
Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
Trading Center