Kapitalregnskap

Kapitalregnskap, literally “capital accounting” in Norwegian, refers to the part of financial reporting that concentrates on a company’s capital base—the funds provided by owners and other long-term financing sources, and how those funds are used to acquire and maintain capital assets. It tracks changes in the capital structure over time and provides insight into solvency and long-term financial resilience. It sits alongside the income statement and cash flow statement to give a fuller picture of an entity’s financial health.

Core elements typically included are equity (share capital, retained earnings, reserves), long-term liabilities such as loans and bonds, and capital-related transactions such as capital grants or subsidies. The capital regnskap also accounts for capital investments in fixed assets, including purchases, disposals, depreciation, and impairment. Changes in capital through events like new share issues, buybacks, dividends, or mergers are recorded to show how the capital base has evolved. In many jurisdictions it is presented as part of the balance sheet or as the statement of changes in equity, and it may be governed by national accounting rules and international standards such as IFRS.

Purpose and use: kapitalregnskap helps users assess capital structure, funding strategies, and the sustainability of investments in long-term assets. It complements the income statement by showing how profits affect capital and how capital is preserved or expanded over time. Limitations include reliance on estimates for asset valuation and depreciation, and the fact that it does not by itself capture day-to-day operating performance.