Capital Expense Item

A Capital Expense Item is an expenditure item for capital assets.

• AKA: Capital Outlay.
• Context:
  • It can range from being an Operating-Funded Capital Expense to being a Capital-Funded Capital Expense.
  • It can (often) include the fees for architects, engineers, lawyers, and other professional services, plus the cost of financing advance planning.
  • It can (typically) include the cost of materials and installation/construction.
  • It can be reported by a Capital Expenditures Measure.
  • …
• Example(s):
  • Real Estate Capital Expense, such as site improvements expenses, and building improvement expenses.
  • Equipment Capital Expense, such as machinery expenses, vehicle capital expenses, and computer capital expenses.
  • Intangibles Capital Expense.
  • …
• Counter-Example(s):
  • Project Expense.
• See: Capital Improvement Project, Operational Expense, Non-Capitalized Expense.

---

---

References

2016

• (Wikipedia, 2016) ⇒ https://en.wikipedia.org/wiki/capital_expenditure Retrieved:2016-10-5.
  • Capital expenditure or capital expense ("capex") is an expense where the benefit continues over a long period, rather than being exhausted in a short period. Such expenditure is of a non-recurring nature and results in acquisition of permanent assets. It is thus distinct from a recurring expense.
• (City Council of Barnstable, 2016b) ⇒ Town of Barnstable. (2016). “Town of Barnstable Adopted Operating Budget - 2017."
  • QUOTE: Capital expenditures/improvements: Items generally found in the capital budget such as construction or major repairs to municipal buildings. The fees for architects, engineers, lawyers, and other professional services, plus the cost of financing advance planning, may be included in addition to the cost of materials and installation/construction.
• (City Council of Cambridge, 2016b) ⇒ City Council of Cambridge, MA. (2016). “Annual Budget 2016-2017 Adopted by the City Council, Cambridge, Massachusetts."
  • QUOTE: CAPITAL EXPENDITURES. Expenditures which result in the acquisition of, or addition to, fixed assets.
• http://www.ofm.wa.gov/policy/glossary.asp
  • QUOTE: … the expenditures for the acquisition of, addition to, or major repair of capital assets intended to benefit future periods. Expenditures may be from either Operating or Capital sources, and may be either capitalized or not capitalized.

2015

• http://www.businessdictionary.com/definition/capital-outlay.html
  • QUOTE: Money spent to acquire, maintain, repair, or upgrade capital assets. Capital assets, also known as fixed assets, may include machinery, land, facilities, or other business necessities that are not expended during normal use. Capital outlays, also referred to as capital expenditures, are recorded by accountants as liabilities on company balance sheets.

2014

• http://www.dof.ca.gov/html/bud_docs/glossary.pdf
  • QUOTE: The expenditure of funds to acquire land or pay the cost of planning and construction of new buildings, or additions to and modification of existing buildings, and the equipment which is related to such construction.

---

2016

• (Wikipedia, 2016) ⇒ https://en.wikipedia.org/wiki/capital_expenditure Retrieved:2016-10-7.
  • Capital expenditure or capital expense ("capex") is an expense where the benefit continues over a long period, rather than being exhausted in a short period. Such expenditure is of a non-recurring nature and results in acquisition of permanent assets. It is thus distinct from a recurring expense.