Capital committments

Updated: Aug 20, 2021

Capital expenditure contracted for by companies or other organizations, of which nothing has been paid by balance sheet date. The Companics Act 1967 provides that these commitmcnts should be shown in the accounts of limited companies, as a note or otherwise. and that a distinction should be made between items contracted for, and those agreed by the directors but not yet contracted for.

Reference: The Penguin Business Dictionary, 3rd edt.

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