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Description

OPEX and CAPEX: Classifying Costs, Deciding on Capitalisation and Measuring the Impact

Decide between period expense and capitalised asset without letting profit depend on an implicit choice

  • 0.43 days — 3 h
  • In-person or virtual
  • Intermediate
  • Up to 6 participants

The boundary between operating expenditure and investment is reopened at every close: development costs, major overhauls, software implementation costs or compliance works on an existing asset. With no written policy, each accountant decides differently, results vary from one period to the next and auditors keep raising the same points.

This three-hour session revisits the most debated capitalisation cases, the criteria that must be met and the consequences for profit and for the ratios monitored by lenders and investors. Participants leave with a decision framework they can apply to their own company's expenditure.

Learning objectives

  • Distinguish a period expense from a capitalisable cost against recognition criteria
  • Analyse development expenditure and the costs of bringing an asset into use
  • Deal with major maintenance expenditure and the component approach
  • Measure the effect of capitalisation on profit and on financial ratios
  • Formalise an internal capitalisation policy that will stand up to audit scrutiny

What makes this programme different

A decision framework applied to genuinely contentious items of expenditure
Quantification of the profit gap between capitalising and expensing
A short format focused on the points typically raised during audit review

Programme

1Setting the Boundary

What separates an expense from an asset

  • Review the conditions for recognising expenditure as an asset
  • Identify the costs systematically excluded from capitalisation
  • Deal with costs directly attributable to bringing an asset into use
  • Position the decision within the company's accounting policy

2Contentious Capitalisation Cases

Where opinions diverge

  • Development costs and internally generated projects
  • Purchased software subsequently configured and deployed
  • Major maintenance expenditure and the component approach
  • Compliance works carried out on an existing asset

3Measuring and Defending the Impact

Consequences beyond the journal entry

  • Effect on the profit of the current and subsequent periods
  • Consequences for equity and apparent gearing
  • Points of attention during the audit review
  • Documentation to retain in support of the position taken

Who is it for

Experienced accountants and accounting managers, together with management controllers involved in closing activities.

Prerequisites

Working knowledge of closing entries and of the concept of a fixed asset.

Dates & locations

12 scheduled dates between November 2026 and December 2027. Seats are confirmed in the order enquiries are received.

November 2026

December 2026

January 2027

February 2027

March 2027

April 2027

May 2027

June 2027

September 2027

October 2027

November 2027

December 2027

None of these dates suit you? We open additional sessions on request, and any programme can be run privately for your team.

Practical details

Before the programme
Online positioning questionnaire. Your development objectives are shared with the trainer, who tailors the practical case studies to your context.
Teaching methods
Theoretical input, workshops and practical case studies. Digital course materials and method sheets provided.
Assessment
Multiple-choice tests and role-play exercises. Assessment of learning at the start and end of the programme, with immediate and 60-day follow-up evaluations.
After the programme
One year of access to the e-learning platform. Self-assessment of the skills acquired and a 30-day follow-up session with your trainer.
How to register
Registration online or on the basis of a quotation.
Lead time
11 working days after confirmation of registration.
Accessibility
Accessible to people of determination. Contact our accessibility coordinator to design a suitable solution: contact@mpf-academy.ae
Start dates
Rolling intake: in addition to the scheduled sessions, this programme can start on request.