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Abubakar Yahaya Bawa
Student (MBA), Nigeria
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🔥 NEW I want to know the actual types of capital expenditure. Thanks for your input! (...) Read more? Sign up for free
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All about Capital Expenditure and business administration. Completely free.
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Bijendra kumar
Student (MBA), India
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Types of Capital Expenditure
All those expenses who upgrades the company / organization physical assets like land, building etc...
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Diego Marques
Analyst, Brazil
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Investiments in IT may be consider Capex
Not only physical assets but even systems improvements may be considered capex. For example, when a company decides to invest or change its ERP system like SAP.
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Zubair Sadat
Financial Consultant, Afghanistan
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Types of Capital Expenditure
Purchases of fixed assets and purchases made to upgrade fixed assets are the two different types of capital expenditure.
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Magnus AAqvist
Financial Consultant, Sweden
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Capex Categories Depend on Company and Gaap/IFRS
I would say the type of capital expenditure is according to the legislative framework the company is under. For example if a company is based in IFRS (European Union), then the cost related to development in a project that is breaking new ground or of features that will generate a future income for the company would also be categorised as capex. If something will generate a income it is then seen as a capex, but it will depend on the nature of the company and what accounting rules it is following.
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