Cost capitalisation
Booking spending as part of an asset's cost instead of as an expense of the period: it reaches the income statement gradually, through depreciation.
How to read the number
The same payment can cut profit at once or be spread over years — within the standard, the company decides which.
When the metric lies
Rising capitalised costs on flat revenue lift today's profit and at the same time build up tomorrow's write-offs.
Also known as: capitalised costs