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The following article is from The Great Soviet Encyclopedia (1979). It might be outdated or ideologically biased.



(1) The conversion of surplus value into capital, that is, the utilization of surplus value for the expansion of capitalist production. The capitalized surplus value forms a fund of capital accumulation that, like capital, is divided in two parts: the additional constant capital, used for the acquisition of additional means of production, and the additional variable capital, used for buying additional labor power.

(2) The process of the formation of fictitious capital. In bourgeois society, each regularly recurrent income (such as ground rent or dividends) is capitalized: it is calculated at the average loan interest rate as if it were income from capital in the form of a loan at this interest rate. Each unearned income received by virtue of the ownership of securities is considered as interest from a certain capital, which in reality does not exist (imaginary capital). The securities issued (shares, bonds of corporations or the state) become capital and bear interest. The increase in the rates of the shares (capitalized dividends), particularly in the period of cyclic upsurge, leads to the accumulation of fictitious capital, which qualitatively and quantitatively differs from the accumulation of real capital and which is determined by its own laws. At the same time, the excessive expansion of fictitious capital and the subsequent stock exchange collapse may seriously affect the process of capital accumulation. Since the whole mass of fictional capital represents a capitalized income, the change of its value does not depend on the value movement of the actual (real) capital that it represents. Capitalization means the further development of the fetishist character of capitalist relations of production, that is, a further development of the treatment of money and things as if they had a kind of magic power over men.


Marx, K. Kapital, vol. 3. K. Marx and F. Engels, Soch, 2nd ed., vol. 25, chs. 1–2, sees. 5–7.
Novye iavleniia v nakopenii kapitala v imperialisticheskikh stranakh. Moscow, 1967.


The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
As described above, losses realized on one leg of an identified straddle are capitalized into the basis of the offsetting leg, rather than suspended under the general loss deferral rule.
The IRS's conclusion in TAM 9541005 that the costs must be capitalized solely because of the later-rescinded gift was quickly criticized by practitioners, who did not believe that the company's break in ownership should remove the situation in TAM 9541005 from the ambit of Revenue Ruling 94-38.(5) Since the contamination occurred before the contribution to the county and since the company held the land at all relevant times, the commentators agreed, it is appropriate to treat the company as if it stood in the same posture as the taxpayers in Plainfield-Union and Revenue Ruling 94-38 and, accordingly, to measure the value of the property after the costs were expended against the value of the property before the contamination (i.e., before the event necessitating the costs).
Centering the analysis on the environmental remediation expenditures and concluding that all costs must be capitalized conjures up the image of a sorcerer who utters an unintelligible incantation and then claims credit for a subsequent solar eclipse.
While reserving the right to identify--in future published guidance--amounts "paid to create or enhance a future benefit" that must be capitalized, the final regulations do not retain an open-ended future benefit standard.
For example, that year, 76.7% of Georgia banks were Well Capitalized and another 6.5% of banks were Adequately Capitalized (for a total of 83.3%).
471 costs that are not required to be capitalized for tax purposes from ending inventory by treating them as negative additional Sec.
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The proposed "tangibles regulations" published in the Federal Register on August 21, 2006 (1) largely refine and clarify rather than fundamentally change the decades-old criteria for distinguishing between deductible expenses incurred to repair and maintain tangible property and capitalized costs incurred to acquire, produce, or improve such property.
However, a look at equipment operating lease statistics only shows that the vast majority of the transaction volume is comprised of small and mid-sized transactions of less than $250,000, with average lease terms of less than four years, whose capitalized value would be less than 0.4 percent of assets and 1.2 percent of debt.
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The difference between the carrying amount of a policy (acquisition cost plus capitalized premiums plus income recognized) and its face value is recognized as income ratably over the insured's life expectancy.