Cost is made up of three parts: the purchase price, with import duties and any non-refundable taxes on the purchase added and trade discounts and rebates deducted; every cost directly attributable to getting the asset to its place and into the working state management intends (employee benefits arising directly from building or acquiring it, site preparation, delivery and handling, installation and assembly, testing whether it works properly, professional fees); and the initial estimate of dismantling, removal and site restoration obligations incurred on acquisition or through use other than to produce inventories (obligations from producing inventories fall under AASB 102, and all such obligations are measured under AASB 137). Costs of opening a facility, launching a product, operating in a new location or with new customers, staff training, and general administration are not cost. Capitalisation stops once the asset is ready for its intended use, so costs of an asset awaiting use or running below capacity, initial operating losses and relocation costs are expensed. Where items such as test samples are produced while the asset is being readied, their sale proceeds and their cost both go through profit or loss, the cost being measured under AASB 102. Income and expenses of incidental operations not needed to get the asset ready, such as using a site as a car park, go to profit or loss. A self-constructed asset is costed on the same principles, eliminating internal profits and abnormal waste, with AASB 123 governing capitalised interest; bearer plants are treated like self-constructed assets until they are ready to bear produce.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.