Under IFRS 16 Property Plant and Equipment you can't charge depreciation and capitalize.
For your following element of cost should be capitalized under IFRS 16
The cost of an item of property. plant and equipment comprise:
- Its purchase price, import ditties and non-refundable purchase taxes after deducting trade
discounts and rebates.
- Any costs necessary to bring the asset into current location and condition intended by
management.
- The initial estimate of the costs of dismantling and removing the item and restoring the site.
Examples of directly attributable costs are:
- Costs of employee benefits arising directly from the construction or acquisition of an item al
property. plant and equipment.
-Costs of site preparation
- Initial delivery and handling charges.
- Installation and assembly cost.
- Cost of testing whether the asset is functioning properly, after deducting the *** proceeds from
selling any items produced (such as samples produced when testing equipment); and
- Professional fees.
Further, You can't charge depreciation until:
1)The plant is available for use, i.e. when it is in the location and condition necessary for it to be capable of operating, in the manner intended by management.
This is required by IFRS 16.