"The cost of Property, Plant and Equipment comprises of any cost directly attributable to bring the asset to the location and condition necessary…

Cost of Property, Plant and Equipment comprise of any cost directly attributable to bring the asset to the location and condition necessary for it to be capable of operating in a manner intended by the enterprise. Examples of directly attributable costs are: (a) cost of employee benefits arising directly from acquisition or construction of an item of property, plant and equipment. (b) cost of site preparation (c) initial delivery and handling costs (d) installation and assembly costs (e) cost of testing whether the asset is functioning properly, after deducting the net proceeds from selling the items produced while testing (such as samples produced while testing) (f) professional fees e.g., engineers hired for helping in installation of a machine (g) transportation cost (h) trial run expenses Thus, all the expenses which are necessary for asset to bring it in condition and location for desired use will become part of cost of the asset. Or (i) Revenue Expenditure. (ii) Capital Expenditure. (iii) Capital Expenditure. (iv) Revenue Expenditure. (v) Capital Expenditure.