How does one account for expenditure on a building design.

Question

Is it capitalised on the cost of PPE or accounted for separately in terms of IAS 38.

Answer 1

Usually it's part of PPE cost, because it's necessary to bring asset to current location and condition (IAS16.16b). Also cost of design does not meet criteria of identifiably (IAS38.12).  
   But if the design will be used to build many buildings (such as residential houses in the condominium), then it’s intangible asset.