The Share Price Speculation Thread, page-67

yes Pilatus, all above board and used by many companies

But it forms part of any proper analysis of profit and loss - as to the real underlying profits

Capitalised expenditure has been spent - cash outflow

Profit of $4.9m for FY 2016 would have been reduced significantly if $2.67m were expensed as normal operating expenditure

The accounts clearly stated that this expenditure helped revenues in FY 2016 but have adopted to capitalise it over a few years or so ..

''The company spent and capitalised $2,627,790 FY16 (FY15 $1,176,045) on system development, platform development and product development. A component of that expenditure was wages, this expenditure was capitalised: FY 2016 $1,122,500 (FY 2015 $721,824). ''

''This expenditure has underpinned and facilitated the Company’s expansion of markets, products and revenues both in Australia and overseas: revenues in FY2016 increased by 83.44% (FY2015 increased by 71.35%)''

IMO, as mbe are expanding into many overseas markets - capitalised expenditure may increase over next few years