Renewal or more formally Asset Renewal is the replacement or refurbishment of an existing asset (or component) with a new asset (or component) capable of delivering the same level of service as the existing asset.
A renewal activity is any work on an asset or asset component that is of a capital nature and (attempts) to bring the asset component (or asset) back to as new condition. Renewal activities are appropriate to all assets and can involve the complete replacement of the asset (in situ) with the new asset providing the original (intended) level of service.
Examples of renewal activities, include:
Renewal expenditure is any expenditure on the renewal of an asset.
