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Kapitalverzehr

English translation: capital consumption

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)

German term or phrase:	Kapitalverzehr
English translation:	capital consumption
Entered by:	Michél Dallaserra

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21:32 Nov 1, 2009

German to English translations [PRO]
Bus/Financial - Finance (general)

German term or phrase: Kapitalverzehr

Die Kapitalkosten werden durch den Kapitalverzehr, in Form von Abschreibungen und Zinskosten, verursacht

Suggested translation:
Due to capital ???, financing costs are effected in the form of depreciation and the cost of interest.

Kapitalverzehr is the opposite of "Kapitalerhalt" - "the preservation of capital" according to http://www.pioneerinvestments.de/de_DE/glossar/kapitalerhalt...

How do we say "Kapitalverzehr" (the opposite of "preservation of capital") in English?

Timothy Wood KudoZ activity Questions: 51 (none open) (1 without valid answers) (3 closed without grading) Answers: 26 United States
Local time: 10:44

capital consumption

Explanation:
Or: consumption of capital.
Not sure, though.

Selected response from:

Michél Dallaserra
Germany
Local time: 18:44

Grading comment

I ended up going with this answer in light of http://www.encyclopedia.com/doc/1O18-capitalconsumption.html. It fits with the section on depreciation, which is where the term in question occured.
4 KudoZ points were awarded for this answer

Summary of answers provided

3 +2

capital consumption

Michél Dallaserra

3 +2

capital diminution

Goldcoaster

3 +1

capital reduction

xxxP.D.I.

Summary of reference entries provided
capital consumption allowance	Charlesp

Answers

23 mins confidence:

peer agreement (net): +2

capital consumption

Explanation:
Or: consumption of capital.
Not sure, though.

Michél Dallaserra
Germany
Local time: 18:44
Works in field
Native speaker of:

German,

English
PRO pts in category: 8

Grading comment

I ended up going with this answer in light of http://www.encyclopedia.com/doc/1O18-capitalconsumption.html. It fits with the section on depreciation, which is where the term in question occured.

50 mins confidence:

peer agreement (net): +1

capital reduction

Explanation:
revenue losses that cannot be recovered from the firm's earnings, resulting in permanent loss of capital

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Note added at 51 mins (2009-11-01 22:23:57 GMT)
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Just another option...

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Note added at 3 hrs (2009-11-02 01:18:43 GMT)
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I took this definition, however, I am sure there are more cases / more definitions applicable to "capital reduction". Still the term "capital reduction" is quite a good opposite to "preservation of capital".

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Note added at 3 hrs (2009-11-02 01:22:48 GMT)
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One site that gives the definition cited here is:

http://www.businessdictionary.com/definition/capital-reducti...

Ther are other sitations of "capital reduction": for example cancellation of shares, which is not the case here.

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Note added at 6 hrs (2009-11-02 04:20:07 GMT)
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Definition:
Reducing the amount of issued share capital to reflect
(1) permanent reduction in a firm's scale of operations,
or
(2) revenue losses that cannot be recovered from the firm's earnings, resulting in permanent loss of capital.

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Note added at 6 hrs (2009-11-02 04:22:00 GMT)
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Valuable Reference:

http://books.google.com/books?id=rRGF7iSaxc8C&pg=PA374&lpg=P... - Page 374

http://www.fabasoft.com/cms/InvestorRelations/CapitalReducti...

xxxP.D.I.
United States
Local time: 09:44
Specializes in field
Native speaker of:

Bulgarian,

English

Notes to answerer

Asker: This makes a lot of sense, especially because the preservation of capital involves a conversative investment strategy that attempts to avoid any capital losses.

Asker: Your answer makes sense, but the term "capital reduction" seems to be different than the definition of it on http://www.investopedia.com/terms/c/capitalreduction.asp. Any comments?

11 hrs confidence:

peer agreement (net): +2

capital diminution

Explanation:
In a financial context I would use the term "diminution" to describe loss of capital due to interest and depreciation.

Goldcoaster
Switzerland
Local time: 18:44
Native speaker of:

English,

German
PRO pts in category: 6

Reference comments

10 hrs

Reference: capital consumption allowance

Reference information:
Definition

The percentage of the GDP which is due to depreciation. GDP minus capital consumption allowance equals net national product. The capital consumption allowance measures the amount of expenditure that a country needs to undertake to simply maintain, as opposed to grow, its productivity.

Reference: http://encyclopedia.farlex.com/Capital+consumption
Reference: http://www.investorwords.com/702/capital_consumption_allowan...

Charlesp
Sweden
Specializes in field
Native speaker of:

English

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