Appraisal Capital


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.

BREAKING DOWN '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.

  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. Write-Up

    An increase made to the book value of an asset, because its carrying ...
  4. Appraisal Right

    The statutory right of a corporation's minority shareholders ...
  5. Appraisal

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

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