Editing Historical cost (section)

===Property, plant and equipment===
[[Property, plant and equipment]] is recorded at its historical cost.<ref>[[IFRS]] - [[IAS 16]], Property, Plant & Equipment, paragraph 15, IASC</ref> [[Cost]] includes:-
* Purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates;
* Any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating.  These can include site preparation, delivery and handling costs, installation, assembly, testing, professional fees and the costs of employees directly involved in these activities.
In [[IFRS]], cost also includes the initial estimate of the costs of dismantling and removing the item and restoring it.  Cost may include the cost of borrowing to finance construction if this policy is consistently adopted.
The historical cost is then '''depreciated''': it is systematically reduced to the recoverable amount, over the estimated useful life of the asset, to reflect the asset's usage. The depreciation (reduction of historical cost) is charged to expense.<ref>IFRS - [[IAS 16]], Property, Plant & Equipment, paragraph 50, IASC</ref> In most cases the "straight line" depreciation method is used, resulting in the same [[depreciation]] charge each year until it is expected to be sold or no further economic benefits obtained from it. Other patterns of depreciation are used if assets are used proportionately more in some periods than others.