The cost of new equipment will come under the 'cost of sales' line item on the P&L.
Baggedem
I think they are only talking about where the impairment if any (for P&E which includes cameras) will be reflected, not the actual cost. It does not make any sense to reflect the purchase of P&E through the cost of sales line for rental equipment as it's not a sale of that equipment.
You could ask the question whether these cameras are worth anything in yr3 (if not then this will be impaired), but by then, based on the economics they indicated, they have earned a reasonable margin on their asset.
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