What is capital expenditure?

[dark horse]

I know flooring, kitchen Appliances fall under this. But what about beds, desks, lockers, that kind of thing? Does it depend in the price? Or is the general rule of thumb that it is items that you should only be replacing roughly every 8 years?

 

[STEINER]

Beds, desks, lockers etc would be classed as furniture, fixtures & fittings, ie assets, so yes capital items as opposed to repairs & maintenance. The thinking behind it is to spread the cost of the items over the lifetime of the assets rather than distort the profit/loss or taxation in one particular accounting /business year.

 

[dark horse]

So if I buy a locker for €60 that has to be spread over 8 years?? Is there no leeway when it's small money? Are the revenue very strict on this?