Capital expenditure

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Capital expenditures (including capex for English cap ital ex penditure ; colloquially " investment costs" ) which at a be investment made expenditures for long-term assets called, for example, for new office furniture and equipment , rolling stock , real estate or equipment . In contrast to the capital expenditures, expenses are for the business operations, and the operating costs (including Opex called for English op erational ex penditure ). Capex and Opex together make up the Totex (for English total expenditure ).

General

In a business sense, it is not a matter of costs , as investments flow into asset accounting and lead to changes in depreciation . Rather, it is a question of liquidity-effective expenditure that is financed either by cash payment (asset swap) or equity (from equity ) or outside financing (by borrowing ) (balance sheet extension). Only the depreciation induced by the investment in the following years represent expenses in the correct economic sense.

economic aspects

All types of investment ( expansion , replacement , rationalization investments or intangible investments ) cause capital expenditure. Thus, research and development costs (which are a real cost type) also represent capital expenditures.

Investments are designed for a longer period of time. For example, in the case of buildings or production facilities that are used for many years, the depreciation is not deducted from the profit immediately upon acquisition, but is distributed over the useful life . In terms of tax law, investments are not costs (i.e. not operating expenses ), but the conversion of assets . The current assets ( bank balance , cash on hand ) are converted into fixed assets . When the investments (assets) are used, they lose value. That is, they wear out. During the useful life, any decrease in value , for example due to wear and tear, is charged to the income statement as an expense (written off).

See also

literature