Tube stock modernisation

[Snow1964]

The TfL Board Papers for next Programmes and Investment Committee have details of the £528 capital upgrades to rolling stock (this doesn’t include cost of routine maintenance)

What is happening pages 50-59
Key deliverables and how many trains in each fleet at this stage page 60
Amounts per line page 61

There also appears to be first part of a new non line specific risk

Also appears first Metropolitan train gets lift in October (are they already that old that capital upgrades start)

http://content.tfl.gov.uk/pic-20072020-agenda-public.pdf

As the info is in tables, or long, not going to quote it all

 

[jopsuk]

Also appears first Metropolitan train gets lift in October (are they already that old that capital upgrades start)

10 years since first revenue service come the end of this month

 

[Taunton]

The TfL Board Papers for next Programmes and Investment Committee have details of the £528 capital upgrades to rolling stock (this doesn’t include cost of routine maintenance)

How on earth does this get categorised as Capital Expenditure, when even the document states it is a scheduled routine heavy overhaul during the life of an asset? Does TfL not have any accountants/auditors to explain to them the difference?

 

[Hadders]

How on earth does this get categorised as Capital Expenditure, when even the document states it is a scheduled routine heavy overhaul during the life of an asset? Does TfL not have any accountants/auditors to explain to them the difference?

I'm not an accountant but as I understand it you can capitalise expenditure if it prolongs the life of an asset.

 

[Taunton]

I'm not an accountant but as I understand it you can capitalise expenditure if it prolongs the life of an asset.

It's well defined, the cost of a capital rebuild has to be a defined percentage of the original price, adjusted for inflation, and it has to enhance the capability. Replacing the air con doesn't count; fitting air con where there was none before does. Otherwise it goes in Repairs & Renewals as running costs.

I know TfL doesn't do tax but a taxman's definition here is a good example https://www.rfm-more.co.uk/2015/04/repairs-and-renewals-capital-or-revenue-expenditure/