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mikere t1_j9f9kvq wrote

Reply to comment by Neoliberalism2024 in FYI for anyone trying to take an Uber/Lyft from LGA on Sunday by RevolutionaryAd5176

no capex is not expensed on the income statement for SEC reporting purposes. It might be deducted from the income statement for IRS purposes if they elect bonus depreciation or section 179

The journal entries for capex goes:

Debit PP&E

Credit Cash (or accounts payable)

Nothing gets put on the income statement

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Neoliberalism2024 t1_j9f9qa8 wrote

Capex is deducted through depreciation of the Capex each year.

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mikere t1_j9fasaq wrote

Quote of the year for /r/accounting

up there with grocery stores taking tax deductions from those charity donations at the register

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Neoliberalism2024 t1_j9fl3p1 wrote

If you’re an accountant, yikes…

https://www.investopedia.com/ask/answers/112814/does-capital-expenditure-capex-immediately-affect-income-statements.asp

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mikere t1_j9fo0sq wrote

> Money spent on CAPEX purchases is not immediately reported on an income statement

literally in the second paragraph

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Neoliberalism2024 t1_j9fts0w wrote

Cool now keep reading where they explain how Capex flows through to depreciation and impacts the income statement, like I said three posts ago.

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mikere t1_j9fvcog wrote

Uber’s capex of 300 million last year results in a whopping $30-40m of annual depreciation assuming a 7-10 year average lifespan and straight line method

Is there any quarter in recent history in which Uber had positive operating income excluding depreciation? I think that would answer the question on whether capex/depreciation is the driver in keeping Uber’s net income negative

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