Future Capital Maintenance

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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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    Whether a dividend distribution has any effect on additional paid-in capital depends solely on what type of dividend is issued: ... Read Full Answer >>
  3. Why can additional paid in capital never have a negative balance?

    The additional paid-in capital figure on a company's balance sheet can never be negative because companies do not pay investors ... Read Full Answer >>
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