FAF3
Syllabus D. Recording Transactions And Events D4. Tangible non-current assets.

D4d. Classify expenditure 4 / 9

Syllabus D4d)

Classify expenditure as asset expenditure or expenses charged to profit or loss.

Capital / Revenue Expenditure

Capital expenditure results in the appearance of a non-current asset in the statement of financial position of the business.

Revenue expenditure results in an expense in the statement of profit or loss.