Accounting · IAS 16 Property, Plant and Equipment

Era Construction Plc commenced the construction of a new administrative office building for its own use on 1 January 20X4. The following costs were incurred during the construction period until completion on 30 September 20X4: - Purchase price of land: $5,000,000 - Stamp duty on land purchase: $250,000 - Legal fees for land acquisition: $150,000 - Site preparation and clearance costs: $300,000 - Building materials: $1,200,000 (includes $100,000 for materials damaged during a storm) - Direct labour costs: $800,000 (includes $50,000 for idle time due to breakdowns) - Architect's fees: $100,000 - General administrative overheads allocated based on staff time: $200,000 - Interest on specific construction loan ($2,000,000 at 8% p.a. for 9 months): $120,000 - Investment income earned on temporary investment of surplus loan funds: $10,000 The building was ready for its intended use on 30 September 20X4. What is the total cost that should be capitalised as part of Property, Plant and Equipment (IAS 16) for this building asset?