Capex Classification Audit
Separate repairs, overhauls, and capital additions so capitalisation policy matches plant reality.
On a busy floor, maintenance and capital blur. A rebuild may be capital; a like-for-like replacement may not. We sample recent projects and purchase orders, test them against your capitalisation policy, and flag items that inflate or understate the register. Ideal before an acquisition, lender review, or when expense ratios look inconsistent with plant age.
- Policy vs practice sampling
- Repair vs capital decision log
- Componentisation notes for major assets
- Policy wording suggestions