What is included in the initial measurement of Property, Plant, and Equipment (PPE) under IAS 16?

The initial measurement of Property, Plant, and Equipment (PPE) under IAS 16 includes all costs that are necessary to bring the asset to its intended use and location. This encompasses the purchase price, any directly attributable costs (such as delivery and installation), and initial estimates of dismantling and restoration costs if applicable. Therefore, the correct choice reflects the essential nature of these costs, which ensure that the asset is ready for use in the production of goods or services.

Looking at the other options, the market value of similar assets does not factor into the measurement of PPE; instead, historical cost is the primary basis. Estimated write-off values are not included in the initial measurement but rather influence future impairment considerations. Additionally, residual value pertains to the asset's value upon disposal and is not part of the initial cost calculation. Thus, the focus on bringing the asset to its location clearly aligns with the requirements specified under IAS 16 for proper accounting of PPE.