 Hello, in this lecture we will define betterments. According to fundamental accounting principles, Wild 22nd edition, the definition of betterments is expenditures to make a plant asset more efficient or productive, also called improvements. When we're thinking of betterments, we're typically thinking of property plant and equipment, those longer lived assets, those typically depreciable assets, assets that will be put on the books as an asset and then depreciated over the useful life in accordance with the matching principle. For example, if we had our forklift here, we would put the forklift on the books as an asset, then depreciated over its useful life. When we're thinking about betterments, we can compare that to a normal expenditure, a normal expenditure like repairs and maintenance would just be expensed at the time it was done. As opposed to a betterment, a betterment, if we were to completely re-innovate this forklift, we put a whole new forklift together, a new engine in it, possibly we make the forklift capable of doing a job that it was not doing before, those would be types of betterments and betterments rather than being expensed at the time of the betterment will need to be put on the books as an asset and then depreciated in a similar way as the original purchase, that being because the asset now has a longer life and or a new purpose to it and therefore should be treated in accordance with the matching principle by putting the cost on as an asset and then depreciating it as it is used.