Elements of The cost of an item of PPE comprises:

initial costs a) Purchase price + import duties and non-refundable purchase taxes, less
trade disc. & rebates.
b) Any directly attributable cost in bringing asset to the location & condition
necessary for it to be capable of operating in the manner intended by
management.
c) The initial estimate (at Present value) of the costs of dismantling, removing
the item & restoring the site on which it is located.

Directly Examples of DAC (included as item of PPE) are:

attributable a) Cost of employee benefits arising directly from the
costs construction/acquisition.
b) Costs of site preparation.
c) Initial delivery and handling costs.
d) Installation and assembly costs.
e) Costs of testing whether the asset function properly.
f) Professional fees i.e. architect & surveyor fees.

Not cost of Examples of costs excluded from item of PPE:

PPE a) Costs of opening a new facility.
b) Costs of introducing a new product or service (advertising/promotional).
c) Costs of conducting business in a new location or with a new class of
customer (incl. costs of staff training).
d) Administration & other general OH cost.
e) Interest paid to finance the purchase of PPE. Exception : interest incurred
on funds borrowed to finance construction of PPE (capitalised).
f) The acquisition of new machinery is accompanied by employee training.