what are terms of reference in a project
Terms of reference Terms of reference (TOR) define the purpose and structures of a project, committee, meeting, negotiation, or any similar collection of people who have agreed to work together to accomplish a shared goal.[2] Although the terms of reference of a project are often referred to[by whom?] as the project charter[3], there are significant differences between the two. This article will describe the import of a TOR containing detailed definitions however, a project charter is defined as containing high-level requirements, assumptions, constraints and descriptions as well as a budget summary without detail and a milestone-only schedule. [4]
Capital expenditure Capital expenditures are the funds used to acquire or upgrade a company's fixed assets, such as expenditures towards property, plant, or equipment (PP&E).[3] In the case when a capital expenditure constitutes a major financial decision for a company, the expenditure must be formalized at an annual shareholders meeting or a special meeting of the Board of Directors. In accounting, a capital expenditure is added to an asset account, thus increasing the asset's basis (the cost or value of an asset adjusted for tax purposes). capex is commonly found on the cash flow statement under "Investment in Plant, Property, and Equipment" or something similar in the Investing subsection.