I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

Capital expenditure results in the purchase or improvement of non-current assets, which are assets 

that will provide benefits to the business in more than one accounting period, and which are not 

acquired with a view to being resold in the normal course of trade. The cost of purchased non-current 

assets is not charged in full to the statement of profit or loss of the period in which the purchase occurs. 

Instead, the non-current asset is gradually depreciated over a number of accounting periods in 

accordance with the accruals concept. 

 IMPORTANT 

Capital expenditure is expenditure that can be capitalised as part of the cost of a non-current asset. 

Revenue expenditure cannot be capitalised as part of the cost of a non-current asset and must be 

expensed in the statement of profit or loss.

BPP Tutor Toolkit Copy

---

CHAPTER 8  

//

  TANGIBLE NON-CURRENT ASSETS