Mittekapitaliseeritud

Mittekapitaliseeritud is a term used in accounting and financial reporting to describe expenditures that are not recorded as assets on the balance sheet. Instead, such costs are expensed in the period in which they are incurred. The concept contrasts with capitalization, where costs are recognized as long-term assets and depreciated or amortized over their useful lives.

The determination whether a cost is capitalized or expensed depends on accounting policies and standards, such as IFRS or national GAAP, and on criteria like the expected future economic benefits and the ability to reliably measure the cost. Costs that are routine, recurrent, or below a capitalization threshold are typically treated as mittekapitaliseeritud. For example, ordinary maintenance and minor repairs are usually expensed, whereas expenditures that extend an asset’s life, enhance its capacity, or significantly improve its efficiency may be capitalized.

Implications for financial statements are significant. Expensing a cost reduces net income in the current period and does not increase non-current assets, whereas capitalization increases assets and results in depreciation charges over time. This distinction affects profitability metrics, asset bases, and cash flow analysis.

In practice, an entity’s accounting policy will specify capitalization thresholds and criteria. If a cost does not meet capitalization criteria, it is recorded as a mittekapitaliseeritud expense, while costs meeting criteria are kapitaliseeritud assets. The term is commonly used in Estonian financial reporting and auditing contexts.