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.

RELATED TERMS
  1. Maintenance Expenses

    The costs incurred to keep an item in good condition and/or good ...
  2. Extraordinary Repairs

    Unusually extensive maintenance work performed on a piece of ...
  3. Capital Maintenance

    An accounting concept based on the principle that income is only ...
  4. Asset Condition Assessment

    A report outlining how an organization can manage capital assets ...
  5. Replacement Cost

    The cost to replace the assets of a company or a property of ...
  6. House Maintenance Requirement

    The minimum amount of equity that an account holder must maintain ...
Related Articles
  1. Investing

    Capital Expenditure Versus Revenue Expenditure

    Capital expenditures and revenue expenses have significant differences. Here's the difference between the two.
  2. Investing

    Explaining Capitalized Cost

    A capitalized cost is an expense associated with a fixed asset that is added to the basis of that asset and expensed over its depreciable life.
  3. Personal Finance

    Don't Ignore Maintenance Fees When Buying Real Estate

    Buying an apartment or condo costs more then the price of the unit. There are also unavoidable monthly maintenance fees that can vary greatly.
  4. Personal Finance

    New Home Repair Troubleshooting

    Think a new home means no repairs? Think again. Learn about common repair and maintenance items and how to cut your costs.
  5. Investing

    Explaining Cost Of Capital

    Cost of capital is the cost of funds used to finance a business.
  6. Managing Wealth

    What's an Asset?

    An asset is a resource with economic value.
  7. Markets

    How to Trade Futures Contracts

    Futures is short for Futures Contracts, which are contracts between a buyer and seller of an asset who agree to exchange goods and money at a future date, but at a price and quantity determined ...
  8. Markets

    Explaining Market Orders

    A market order is the most common order used to purchase a financial security.
  9. Investing

    Understanding Capital Assets

    A capital asset is one that a company plans on owning for more than one year, and uses in the production of revenue.
  10. Trading

    How To Start Trading: Order Types

    The types of orders you use can have a large effect on your trading performance, so understanding the different order types is important to your success.
RELATED FAQS
  1. What are typical examples of capitalized costs within a company?

    Learn examples of capitalized costs such as expenses incurred to put fixed assets to use as well as software development ... Read Answer >>
  2. Are capital assets normally immediately expensed or are they amortized/depreciated ...

    Understand the distinction between capital assets and business expenses, and learn whether capital assets are usually expensed ... Read Answer >>
  3. How do capital expenditures affect (CAPEX) the valuation of a company?

    Learn the effects that capital expenditures, or CAPEX, used for maintenance and growth have on a company's revenue, profits ... Read Answer >>
  4. How do you account for changes in the market value of various fixed assets?

    Understand how to account for changes in the fair market value of a company's fixed assets. Learn what accounting methods ... Read Answer >>
  5. What is the difference between a capital expenditure and a revenue expenditure?

    Understand the difference between a company's capital expenditures and revenue expenditures, and how each expense appears ... Read Answer >>
  6. What is the difference between an operating expense and a capital expense?

    Learn the differences between an operating expense and a capital expense, and see how the two types of expenses are treated ... Read Answer >>
Hot Definitions
  1. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  2. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  3. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  4. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  5. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  6. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
Trading Center