CAPEX - Capital Expenditure
Capital expenditure (also CAPEX from CAPital EXpenditure) - capital used by companies for the acquisition or modernization of physical assets (residential and industrial real estate, equipment, technology).
The basis of capital expenditure in the IT area is:
- equipment and materials fixed within the framework of investment projects in Fixed Assets
- equipment cost of which excluding VAT exceeds 40,000 rubles
- perpetual intangible assets as capital expenditures (licenses, SAP Oracle etc.)
Increased CAPEX Costs - Increases
- Capitalization of the company, total value.
- Lower operating costs and lower costs
Advantageous FOR:
- Increasing cross-sectoral indicators. Increase company rating.
- The need to increase the value of IPOs, attract investors, increase the value of shares
- When selling a company, overestimate capitalization and issue a better deal
IF the company contains a large material base as the main source of profit. Increasing CAPEX is her scenario.
Increase in CAPEX
- Investment projects in which all materials, equipment and licenses are included in the capitalization of fixed assets
- Grouping of equipment worth less than RUB 40,000 into fixed assets. Example: Monitor + System Unit = Automated Workstation.
- Record indefinite licenses in CAPEX only. Example: Microsoft, SAP, Oracle, etc.
- Transfer of fixed-term licenses and subscriptions to CERTIFICATES with a useful life of 1 year 1 month
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