Correct distinguishing between capital expenditures and revenue expenditures is very important for matching revenue against expenditures for determining assets value and business results.
Article 20 a clear distinction shall be reasonably drawn between revenue expenditures and capital expenditures.
Expenditures for ordinary repairs, maintenance, fuel, and other items necessary to the ownership and use of plant assets are called revenue expenditure and are recorded by debiting expense accounts.
Have not divide the capital expenditure and revenue expenditure strictly according to traditional accounting principle.