TABLE OF CONTENTS 
Import duties and non-refundable purchase taxes are added to the purchase together with all direct costs needed to bring the asset to its current location and condition. This includes costs needed to bring the asset into normal use such as the connection fee to utilities without which the asset will not function.
| Caution | Management often focus on ensuring good news today and worry less about the future knock-on effects. Consequently it is in their interests to roll expenses into the carrying value of the asset and hence maintain profits. We will need to look at this again as it has been the theme of many corporate frauds. |
