Bravada International Ltd (BRAV)

[naturalborninvestor]

you can capitalize any expense if it provides future economic benefit over several years (with reasonable certainty. It's a decision you make.
Capitalizing a cost means you bypass the income statement in the current period and simply report the cost as an asset on the balance sheet. As a result, profitability is not affected - in the current period. In future periods, the capitalized cost is depreciated as an expense (on the income statement) and will decrease your future profits.