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    ParrotBird48516's Avatar
    ParrotBird48516 Posts: 28, Reputation: 1
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    #1

    May 17, 2012, 04:55 PM
    Shop upgrade/refurb on budgeted income statement?
    A business has forecast/budgeted for three payments (August, October, December) of varying amounts to refurbish their shop. Do these figures appear on a budgeted income statement? Is it considered capital expenditure?

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    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    May 18, 2012, 12:02 AM
    Quote Originally Posted by ParrotBird48516 View Post
    A business has forecast/budgeted for three payments (August, October, December) of varying amounts to refurbish their shop. Do these figures appear on a budgeted income statement? Is it considered capital expenditure?

    Thanks
    I thought we already been over this in a different way. I have never seen an income statement that included capital expenditure but it could be considered maintenance depending upon how often they do this and how large their shop is. I think you need to get some definitions straight

    Capital Expenditure is that expenditure where the useful life is expected to be more than one accounting period or it generates an asset which will provide or facilitate future earnings in more than one accounting period or it is of a significant nature such that it creates an asset. Certain minor capital expenditure may be written off in the year of expenditure

    An income statement measures the performance of a business over one accounting period an income statement is different to a cash flow statement

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