Capital Expenditure

Capital Expenditure (CAPEX) is expenditure that creates an asset or that increases an existing asset's remaining useful life (RUL).


Capital Expenditure can be broken up into 4 separate components;

International Infrastructure Management Manual

The International Infrastructure Management Manual defines Capital Expenditure (CAPEX) as: ''expenditure used to create new assets or to increase the capacity of existing assets beyond their original design capacity or service potential. CAPEX increases the value of asset stock.

Victorian Auditor-General's Office

The Victorian Auditor-General's Office defines 'Capital Expenditure' as money an entity spends on:

  • new physical assets, including buildings, infrastructure, plant and equipment;
  • renewing existing physical assets to extend the service potential or life of the asset.

Non-capital Expenditure

Non-capital Expenditure can be broken up into 2 separate components;

Related Pages

External Links & References

  1. Department of Public Works Works Division Guidelines
  2. NAMS.AU Position Paper - Capitalisation Policies
  3. International Infrastructure Management Manual
  4. Google Search
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