Re: Java Upgrade classification

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We would categorize this as OPEX because it is maintenance.

On Thu, Oct 25, 2018 at 5:19 PM Ramesh Kulkarni <
[email protected]> wrote:

> Hello
>
> As we are preparing the 2019 budget, I added Java Upgrade project for next
> year and I was having a discussion with our controller on how that project
> can be categorized: CAPEX or OPEX.
>
> My thinking was as we need to keep our site secure and as part of that we
> need to make the necessary software upgrades that benefits all the
> customers on the platform, can it be considered a CAPEX?
>
> But our controller was saying this cannot be considered CAPEX as we are
> not building new features for the asset. I partially agreed with her
> argument and thought of doing some research on the internet but could not
> find any link.
>
> So I thought I would ask this group to see how other companies have
> categorized this work and does anyone think this should be a CAPEX? If so
> what would be their argument?
>
> Thanks in advance
> Ramesh
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<div dir=3D"ltr"><div class=3D"gmail_default" style=3D"font-family:georgia,=
serif">We would categorize this as OPEX because it is maintenance.</div></d=
iv><br><div class=3D"gmail_quote"><div dir=3D"ltr">On Thu, Oct 25, 2018 at =
5:19 PM Ramesh Kulkarni &lt;<a href=3D"mailto:[email protected]=
">[email protected]</a>&gt; wrote:<br></div><blockquote class=
=3D"gmail_quote" style=3D"margin:0 0 0 .8ex;border-left:1px #ccc solid;padd=
ing-left:1ex"><div dir=3D"ltr">Hello<div><br></div><div>As we are preparing=
 the 2019 budget, I added Java Upgrade project for next year and I was havi=
ng a discussion with our controller on how that project can be categorized:=
 CAPEX or OPEX.=C2=A0</div><div><br></div><div>My thinking was as we need t=
o keep our site secure and as part of that we need to make the necessary so=
ftware upgrades that benefits all the customers on the platform, can it be =
considered a CAPEX?=C2=A0</div><div><br></div><div>But our controller was s=
aying this cannot be considered CAPEX as we are not building new features f=
or the asset. I partially agreed with her argument and thought of doing som=
e research on the internet but could not find any link.=C2=A0</div><div><br=
></div><div>So I thought I would ask this group to see how other companies =
have categorized this work and does anyone think this should be a CAPEX? If=
 so what would be their argument?=C2=A0</div><div><br></div><div>Thanks in =
advance</div><div>Ramesh</div></div>
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