Capital expenditure (CAPEX) refers to the funds a company invests in acquiring, upgrading, or maintaining long-term assets that are essential for its operations and expected to provide benefits beyond the current accounting period.
Examples of capital expenditure
| Property, Plant, and Equipment (PP&E) | This category includes the purchase or construction of buildings, machinery, equipment, vehicles, and other tangible assets that are used. |
| Intangible Assets | Expenditures on intangible assets, such as patents, trademarks, copyrights, and software, are considered capital expenditures when they provide long-term benefits. |
| Land and Real Estate | Purchasing or developing land for business purposes is considered a capital expenditure. Please refer to section Facilities Development |
| Renovations and Improvements | Significant improvements to existing assets, such as refurbishing a facility or upgrading equipment, are considered capital expenditures. Please refer to section Facilities Development |
Capital expenditures are recorded on the balance sheet as assets rather than expenses. Over time, these assets are depreciated, reflecting their gradual consumption or obsolescence. The depreciation expense is then recorded on the income statement over the asset’s useful life.
Capital Expenditure over $100,000
Under policy statement F106, Surf Life Saving Queensland requires affiliated branches/clubs to notify them of any capital expenditure exceeding $100,000. This includes various types of projects and investments, such as facility improvements, land or property acquisitions, new facility construction, or business ventures using club funds or borrowings.
For further information on how to complete a capex request, please see Notification to SLSQ – Capex Policy.
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