Adjustments to Total Costs
Article D6.1.1
Adjustments to Total Costs
Chapter: D
In Simple Terms
Teams must make specific financial adjustments when calculating their total spending to ensure fair comparison across the grid. These adjustments cover things like how they value transactions with related companies, how they account for research and development, and how they handle currency exchanges and depreciation.
- Teams must adjust for Related Party Transactions to ensure fair market value pricing
- Research and Development costs, capitalization of F1 cars, and inventory accounting must be standardized across all teams
- Foreign exchange costs, tyre test deductions, and depreciation are specifically addressed to level the playing field
- Non-F1 activities must be reclassified so only F1-related spending counts toward the budget cap
Official FIA Text
Unless stated otherwise, adjustments to Total Costs of the Reporting Group must be made including: Related Party Transactions at Fair Value, offsetting of income and costs, Research and Development costs recognition, capitalisation of F1 Cars, Inventories accounting, Power Unit and Standard Supply Components Fair Value, unrecorded costs, foreign exchange transaction costs, tyre test day deductions, Non-F1 Activities reclassification, plant and equipment measurement, and depreciation clawback.