Capital-expenditure schedule

Translate asset replacement and growth plans into timed cash spending, depreciation and closing fixed-asset balances that reconcile across the model.

Quick answer

A capital-expenditure schedule is a supporting model schedule that forecasts spending on long-lived assets and rolls those assets forward by class, project and period. It links capital additions and disposal proceeds to investing cash flow, depreciation to the income statement, and closing property, plant and equipment or other capitalised assets to the balance sheet. A transaction-ready schedule distinguishes maintenance, committed and growth expenditure and records timing, useful lives, funding and approval status.

Use the worked example

Meaning and transaction use

IAS 16 sets principles for recognising property, plant and equipment, measuring carrying amounts, and recognising depreciation and impairment. [S1]

CFA Institute's financial-modelling curriculum includes depreciation schedules and their conversion into fixed-asset schedules. [S2]

A model schedule should connect operational drivers and project approvals to cash needs, depreciation, tax and financing rather than relying only on a flat percentage of revenue.

Worked example

Illustrative one-period fixed-asset roll-forward only. Assume opening gross PP&E of 80.0 million and accumulated depreciation of 30.0 million. Planned capital expenditure is 12.0 million, comprising 5.0 million maintenance and 7.0 million growth expenditure. Assets with original cost of 4.0 million and accumulated depreciation of 2.0 million are disposed of. Period depreciation is 7.0 million.

Scroll the table horizontally to view all columns.

Measure	Calculation	Result
Opening net PP&E	80.0 - 30.0	50.0m
Total capital expenditure	5.0 + 7.0	12.0m
Closing gross PP&E	80.0 + 12.0 - 4.0	88.0m
Closing accumulated depreciation	30.0 + 7.0 - 2.0	35.0m
Net book value disposed	4.0 - 2.0	2.0m
Closing net PP&E	50.0 + 12.0 - 7.0 - 2.0	53.0m
CapEx as a share of illustrative 100.0m revenue	12.0 / 100.0	12.0%

The illustrative schedule produces 12.0 million of investing cash outflow before disposal proceeds, 7.0 million of depreciation expense and closing net PP&E of 53.0 million. Recognition and depreciation treatment require the applicable accounting policy and asset evidence.

Proposed transaction review process

Define the asset perimeter

Set asset classes, projects, currencies, entities, accounting policies, useful lives and model periods.

Map operational drivers

Link replacement cycles, capacity, development milestones, contracts and approvals to expenditure timing.

Build the roll-forward

Track opening cost, additions, transfers, disposals, depreciation, impairment and closing balances by material class.

Integrate and test

Link cash spending, depreciation, tax and closing assets to the statements; reconcile the schedule and test funding and delay scenarios.

Evidence checklist

Asset register

Opening cost, accumulated depreciation, location, ownership, useful life and reconciliation to the ledger.

Project evidence

Approved budgets, contracts, purchase orders, payment milestones, commissioning dates and completion status.

Accounting support

Capitalisation policy, componentisation, useful lives, residual values, impairment and disposal treatment.

Funding and forecast

Sources of funds, draw conditions, contingencies, inflation, foreign exchange and operating-capacity assumptions.

Decision framework

Situation	Proposed action
A project lacks approval or funding	Classify it separately from committed expenditure and state the dependency in the forecast.
Commissioning is delayed	Update cash timing, depreciation start, revenue capacity and financing requirements together.
Maintenance expenditure is understated	Reassess asset condition, replacement cycles and the effect on availability and cash flow.
The asset roll-forward does not reconcile	Resolve additions, disposals, transfers, depreciation and foreign-exchange movements before relying on closing balances.

Common errors to check

Treating every cash payment as an immediate capital addition without checking timing and recognition.
Applying one useful life to materially different asset components.
Omitting maintenance expenditure while forecasting continued operating capacity.
Failing to link capital spending to depreciation, tax, cash flow and funding requirements.

Reconcile the capital-investment plan

Bring the asset register, approved projects, contracts, payment milestones, depreciation policy and funding plan to a capital-expenditure review. Trace each material project through cash flow, depreciation, closing assets and financing requirements.

Discuss the transaction

Primary references and editorial scope

IFRS Foundation, IAS 16 Property, Plant and Equipment
Recognition, measurement, depreciation and impairment principles for property, plant and equipment. Reference checked 17 September 2026.
CFA Institute, Financial Modeling
Depreciation and fixed-asset schedules within integrated financial models. Reference checked 17 September 2026.

Editorial qualification

General financial-modelling education. Figures are hypothetical. Recognition, measurement, depreciation, impairment, tax and funding treatment depend on the assets, contracts, accounting framework and applicable requirements.

General business information. Obtain advice appropriate to the legal, tax, accounting and financing facts. No offer, lender commitment or transaction outcome is represented. All worked examples use expressly assumed figures. Editorial draft date: 17 September 2026.