Australia Accounting for labour costs

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Company A has sold it's main site and is looking to capitalise labour costs to archive,shred,physically move assets,secure document disposal at location B which will be used as the new site.

Do these costs form part of PPE as they are costs incurred to bring the asset to the location and condition capable of operating.

Help!I'm in the weeds with this one.
 
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If it is relocating an existing asset to a new location, then the costs for labor and transportation to a new site cannot be capitalized, as part of the cost of the existing property, plant and equipment, unless you find a basis or argument to substantiate that all these costs enhances the economic benefits of the existing asset above that which was earned when this asset was at the old location.

A mere relocation of asset from one site to another site does not enhance the economic benefits of the asset and such costs cannot be capitalized as part of the existing assets' costs.
 

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