Question

What is the difference between periodic acquisitions vs capital expenditures?

Answer 1

Capital Expenditure refers to funds used by a Company to acquire, maintain and operate fixed assets which entail long term benefits for a Company, like purchasing a plant and machinery. Hence, the cost of such assets are spread over the life of the asset in terms of depreciation.

Periodic acquisition refers to an acquisition being made over a period of time , in return of a consideration to be paid over the period. Each periodic acquisition part is treated as a separate acquisition.