Finance > Capital Expenditure
Authorised by Finance Manager
Revised Date: 22 April 2015
Capital expenditure is defined as expenditure incurred that gives rise to:-
•A new item
•An increase in the service quality of a non-current asset, or
•An extension to the useful life of a non-current asset.
Addition or Extension to an Existing Non-current Asset
Any addition or extension to an existing non-current asset that becomes an integral part of that asset (for example, a building extension) is treated as an addition or extension to that asset and not as a separate asset.
Any addition or extension to an existing non-current asset that is not an integral part of that asset and will be capable of being used after that asset is disposed of (for example, an external disk drive) is treated as a separate assets.
•Purchases of plant and equipment at a cost of $1000 or less are to be fully depreciated in the year of purchase and to be included on the depreciation schedule.