Capital Expenditure Types?

Capital Expenditure
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Abubakar Yahaya Bawa
Student (MBA), Nigeria
🔥NEW I want to know the actual types of capital expenditure. Thanks for your input! (...) Read more? Sign up for free

  Bijendra kumar
Student (MBA), India
 

Types of Capital Expenditure

All those expenses who upgrades the company / organization physical assets like land, building etc...

  Diego Marques
Analyst, Brazil
 

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.

  Zubair Sadat
Financial Consultant, Afghanistan
 

Types of Capital Expenditure

Purchases of fixed assets and purchases made to upgrade fixed assets are the two different types of capital expenditure.

  Magnus AAqvist
Financial Consultant, Sweden
 

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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