Incorporación al activo de gastos financieros

English translation: capitalization of financial expenses

10:38 Jan 30, 2021
Spanish to English translations [PRO]
Bus/Financial - Accounting / Cuenta de pérdidas y ganancias
Spanish term or phrase: Incorporación al activo de gastos financieros
Good morning fellow translators!
I'm working on translating a "Cuenta de pérdidas y ganancias". Within the section "Otros ingresos y gastos de carácter financiero", I have that phrase.
I've checked other entries and see it translated as "capitalization of financial expenses". I don't have a lot of experience with accounting yet so I'm not sure if "capitalization" is the correct answer. Could someone help me verify if this is the correct phrase, please?
Thank you so much for your help!
Inmaculada Borja Rodríguez
Spain
Local time: 23:15
English translation:capitalization of financial expenses
Explanation:
Yes, Inma, that answer is correct.

To capitalize is to record a cost or expense on the balance sheet for the purposes of delaying full recognition of the expense. In general, capitalizing expenses is beneficial as companies acquiring new assets with long-term lifespans can amortize or depreciate the costs. This process is known as capitalization.Sep 29, 2020

Capitalize Definition - Investopediawww.investopedia.com › ... › Financial Statements
Selected response from:

patinba
Argentina
Local time: 19:15
Grading comment
First validated answer (validated by peer agreement)
4 KudoZ points were awarded for this answer



Summary of answers provided
4 +5capitalization of financial expenses
patinba
3 -1incorporation of the financial expense asset
Lisa Rosengard


  

Answers


1 hr   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): -1
incorporation of the financial expense asset


Explanation:
'otros ingresos y gastos de carácter financiero' are:
'other financial incomes and expenses'.
I believe that the capitalization is the advantage of a maximum profit possibility.
The incorporation of the finances is their inclusion in a wider entity. I

Lisa Rosengard
United Kingdom
Local time: 22:15
Specializes in field
Native speaker of: English

Peer comments on this answer (and responses from the answerer)
disagree  insighted: incorporación "al" activo y no "del" activo
9 days
Login to enter a peer comment (or grade)

1 hr   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +5
capitalization of financial expenses


Explanation:
Yes, Inma, that answer is correct.

To capitalize is to record a cost or expense on the balance sheet for the purposes of delaying full recognition of the expense. In general, capitalizing expenses is beneficial as companies acquiring new assets with long-term lifespans can amortize or depreciate the costs. This process is known as capitalization.Sep 29, 2020

Capitalize Definition - Investopediawww.investopedia.com › ... › Financial Statements


patinba
Argentina
Local time: 19:15
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 604
Grading comment
First validated answer (validated by peer agreement)

Peer comments on this answer (and responses from the answerer)
agree  John Rynne
4 hrs
  -> Thank you!

agree  philgoddard: And financial costs are basically interest on borrowings.
4 hrs
  -> Yes. Thank you!

agree  Francois Boye
4 hrs
  -> Thank you!

agree  Luis M. Sosa
5 hrs

agree  Adrian MM.: albeit of 'finance charges' for UK consumption or, otherwise, of finance cost https://www.readyratios.com/reference/accounting/finance_cos...
6 hrs
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