CAPEX – A capital expenditure (“CAPEX” for short) is the payment with either cash or credit to purchase goods or services that capitalized on the balance sheet.
CapEx is often used to undertake new projects or investments by the firm. This type of financial outlay is also made by companies to maintain or increase the scope of their operations.
Capital expenditures can include everything from repairing a roof to building, to purchasing a piece of equipment or building a brand new factory.
CAPEX is essential for companies to grow and maintain their business by investing in new property, plant, equipment (PP&E), products, and technology.
Financial analysts and investors pay close attention to a company’s capital expenditures, as they do not initially appear on the income statement but can have a significant impact on cash flow.
Capital expenditure can be found on a company’s cash flow statement, under “investing activities.”
The Capex Expenditure Forecasting Model (the Capex model) is used to establish a profile of the forecast capital expenditures and capitalizations for network load and non-load driven projects and non-network projects in a nominated regulatory period.
The Capex model is a Microsoft Excel-based application that calculates the project capital expenditures and capitalizations for a set of estimated project costs and anticipated project completion dates.
The course considers the critical distinction between revenue and capital expenditure and reviews some practical issues relating to areas of difficulty such as repairs and improvements.
This course will ensure that delegates understand the implications of changes and are aware of the interaction between capital expenditure on plant and buildings under the new regime, and the impact of the new rules on the purchase of business cars and commercial vehicles.
The course also considers the tax implications of financing the acquisition of plant and machinery through leasing and hire purchase.
You might be in other Asset Management programs as a next step.
YOU WILL LEARN HOW TO
The Capex Expenditure Forecasting Model (the Capex model) is used to establish a profile of the forecast capital expenditures and capitalizations for network load and non-load driven projects and non-network projects in a nominated regulatory period.
The Capex model is a Microsoft Excel-based application that calculates the project capital expenditures and capitalizations for a set of estimated project costs and anticipated project completion dates.
The course considers the critical distinction between revenue and capital expenditure and reviews some practical issues relating to areas of difficulty such as repairs and improvements.
IMPORTANT COURSE INFORMATION
Certificate
Students will receive Strategic Axis professional certificate accredited by UAE Government.
COURSE OUTLINE
What is CapEx?
Difference between CapEx and OPEX
Accounting for Capex
How to Calculate CapEx – Formulas, Examples
Load Driven Project Costs
Non-Load Driven Network Projects
Non-Network Projects
Work In Progress Model
What is CapEx?
Difference between CapEx and OPEX
Accounting for Capex
How to Calculate CapEx – Formulas, Examples
Load Driven Project Costs
Non-Load Driven Network Projects
Non-Network Projects
Work In Progress Model
Module 2: Input Parameters and Escalators
Scenario Modelling
Labour Escalation
Materials Escalation
Land Escalation
Curves
Portfolio Risk Allowance
Module 3: Outputs
Forecast Capex by Project Category (as incurred)
Forecast Capex by Project Category (as commissioned)
Forecast Capex by Asset Class as incurred
Forecast Capex by Asset Class as commissioned
Project Lists
OPEX Growth Factor
Module 4: CAPEX Reports and Analysis
The authorized amount
The actual costs
The committed funds
The unencumbered balance
The estimated cost to complete
The cost overrun (underrun)
Critical Steps & Analysis of a Capital Expenditure