According to CPC 27, in addition to the purchase price of an asset, the company can add to the property, plant and equipment item “any costs directly attributable to placing the asset in the location and condition necessary for it to be able to function in the manner intended by management ”. That said, many companies correctly include in the value of the fixed item various costs, which were necessary for the operation of the goods, such as the cost of services and civil works, preparation of the area to receive a machine, technical services of the machine start-up process, etc.

These additional costs, but directly related to the good, must compose the value of the item, and there are criteria for their inclusion in the fixed assets accounts. A big problem arises when the company does not have a good control of capital expenditures, which allows the allocation of these costs to the item, and often only a process that classifies the entry notes, including additional costs, as fixed assets.

As a result, we have commonly found items such as: 5 m2 of sand, 20 bags of portland cement, 2 mm electrical wires, payment to Mr. Fulano de Tal (Mason), and believe me, even a simple X-salad has already been immobilized.

When we have this situation, there are no alternatives – a detailed inventory of the fixed assets is necessary to allow the accounts to be cleaned up and adjusted in accordance with the rules and regulations of the CPC.