Future Capital Maintenance

DEFINITION of 'Future Capital Maintenance'

A term used to account for future expenses that a company expects to incur in order to maintain its fixed assets. This includes the funds necessary to renew, repair or replace an asset in order for it to continue to function as needed.

 

BREAKING DOWN 'Future Capital Maintenance'

In order to obtain accurate earnings projections, the value of capital including future maintenance costs must first be determined. State, county and local governments can issue municipal bonds to raise funds for future capital maintenance costs.

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RELATED FAQS
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    Working capital as current assets cannot be depreciated the way long-term, fixed assets are. In accounting, depreciation ... Read Full Answer >>
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