Capital Work in Progress Meaning

Capital Work in Progress Meaning thumbnail
Accounting

Capital work in progress is a function of two accounting terms: capital and work in progress. Companies use capital work in progress to track and account for uncompleted building and construction.

  1. Meaning of Capital

    • Capital refers to larger assets that provide a future function for the company. Capital assets include property, plant and equipment.

    Meaning of Work in Progress

    • Work in progress is any construction or assembly not completed at the end of a financial statement. Work in progress allows a company to keep track of assets, even though the assets are not yet completed.

    Financial Statement Position

    • Capital work in progress is an asset on a firm's balance sheet. Specifically, capital work in progress is usually a current asset.

    Depreciation

    • Normally, capital work in progress is not depreciated.

    Managerial Accounting

    • Capital work in progress is usually a function of managerial accounting. Management uses managerial accounting as an internal reference of the firm's performance.

Related Searches:

References

  • Photo Credit business accounts blank image by Nicemonkey from Fotolia.com

Comments

You May Also Like

Related Ads

Featured