Abiblo Finance - Capital Expenditure
Capital expenditure is also known as capital costs, investment costs, capital investment and investment procedure.
Capital expenditure is an organisation's expenditure for the purchase or improvement of a fixed asset of a significant amount.
The amount which is expended would lead the item being depreciated over an estimated useful life of an extended period.
Capital expenditure is the investment which need to be capitalized in the balance sheet as fixed asset and subsequently charged against profit by depreciating asset over the estimated useful life.
Capital expenditure is not charged against the profit of the organisation.