ABSTRACT
CAPITAL EXPENDITURE We have seen that accrual accounting distinguishes between expenditure and expense. So far our concern has mainly been to allocate ‘revenue’ spending between two accounting periods (with the decision affecting both periods). Now we must look at ‘capital’ spending on acquiring fixed assets which have a life stretching over several years. These include intangible assets and investments; but in this section we shall mainly be looking at tangible fixed assets [FRS 15/1 AS 16].
