Large one-off capital costs which need to be amortised over the expected useful lifetime of the item purchased are excluded. The amortised cost may then be treated as part of the overheads. The first statement says exclude and second statement says include. Please explain. Exceptional items, which are not likely to recur would be excluded completely from the analysis. Please explain.
It says exclude the capital cost, eg £5,000,000, but include the amortised cost, eg £1,000,000 per year if spread over 5 years, say. May not include very unusual items at all (ie exceptional items) - eg a fine by the regulator.
