- amortizationThe process used to allocate the cost of an intangible asset to the accounting periods benefited
- bettermentExpenditures that improve or increase the service potential of an asset even beyond its original new condition; such costs may be capitalized by increasing the asset's cost
- bootTerm used to describe additional monetary consideration that may accompany an exchange transaction
- commercial substanceThe quality of an exchange transaction such that it changes the future cash flow potential of the entity
- depletionThe process used to allocate the cost of a natural resource asset to the accounting periods benefited
- exchange transactionTrading one asset for another; to be booked at fair value if the transaction has commercial substance
- impairmentWhen the carrying amount of an asset is not recoverable from its future cash flow
- intangible assetLong-term asset that lacks physical existence; contract rights, copyrights, patents, trademarks, etc.
- natural resourcesOil and gas reserves, mineral deposits, thermal energy sources, and standing timber are just a few examples of such assets that a firm may own
- replacementA restoration of an asset, at least partially, to its original condition; such costs may be capitalized by reducing accumulated depreciation
- revenue expenditureNot a capital expenditure; to be expensed as incurred