Property, Plant and EquipmentElements of Cost:-Purchase Price plus Nonrefundable duties and traces less trade discounts andrebates. -Directly attributable cost: ~ Employee benefits of employees who constructed the property~ Cost of Site Preparation~ Initial Delivery and Handling Cost~ Professional Fees~ Cost of testing or trial less any proceeds from sale of products produced during the trial. -Estimated dismantling cost at its present value.(These are the cost that are incurred in moving the property from its current location.)Dismantling cost is a cost that isunavoidable, thus even though it will be incurred on a future date, it should be estimated on that date of acquisition. However, if it can be avoidable, you may not include it in the calculation for the cost of PPE. What is Commercial Substance-Commercial substance is a new notion and is defined as the event or a transaction causing the cash flows of an entity to change significantly in a reason of exchange.