Capex or opex

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Mangesh Kamble

Mangesh Kamble (Querist)
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16 May 2025 Installation of life line rope at rooftop will it be considered as capex or opex

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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17 May 2025 - If the lifeline rope is a long-term safety investment, enhancing the building's infrastructure and providing lasting benefits, it is likely to be considered capital expenditure. This means it would be capitalized and depreciated over time.
If the installation is part of regular maintenance, temporary safety measures, or periodic replacements, it may be classified as operational expenditure, meaning it would be expensed in the same financial year.
The final classification depends on company policy, accounting standards, and regulatory guidelines.