(25 Oct 2020, 6:53 am)citaro5284 wrote You need to pay for the investments from your profits thou.

So, if you are not spending money and investing in new vehicles, then your profits will be higher as you have not got to pay for them?

It doesn't work like that. If you invest in something it's all done in the balance sheet site by increasing the long term assets but increasing the debt or lowering the short term assets ie cash to balance it out.

It only affects profits when the vehicles get depreciated which I guess will be done yearly probably over the length of there useful life (guessing 15 years) so even known Arriva's vehicles are 10 year old they'll still be affecting the profits to a similar level as a brand new bus that GNE has bought.

 So if a vehicles cost £150,000 just to make it easy ever year for 15 year they'll be charging £10,000 to the profit and loss until it's wrote off. After 15 year then nothing gets charged. If you sell a vehicle for say £5000 which still has £20000 of value left because your selling it after 13 year then youll have a loss straight away of £15,000 to clear it off (the other £5,000) being cash in the balance sheet. Vice versa if you sold it after 15 year then you'll get a profit of £5,000 straight away. 

It's hard to explain but I done accounting at uni