Please Help: Meaning of Capital Commitment
Posted Date : 05-Jun-2012 , 05:14:05 pm | Posted By Hardik Thakkar
What is meaning of the term "Capital Commitment" in theory and practical pharase??
Category : Accounts | Answers : 2 | Comments : 1 | Hits : 809
Answers
Answer By: Rishabh Upadhyay
Allocation of funds for a possible liability in the near future arising out of capital expenditure. Firms must disclose their capital and financial commitments in notes (footnotes) accompanying a balance sheet.
Answer By: Rishabh Upadhyay
Yes, the same will form part of long term liability against an asset.
Comments
Hardik Thakkar
05-Jun-2012 , 05:18:35 pmonly the balance sheet items are considered for this purpose, Right sir??