DCF

Hi,

I would appreciate if someone could help me with few questions.

1) Fixed Asset Accounting
Company bought an asset for $1mln from abroad, according to the local law buyer should pay an import tax – 10%. According to ISA 16 I could capitalize such sort of costs, however, I don’t exactly sure how to treat them in BS, IS and CF.
Balance Sheet
Dr PPE Cr Tax Payable (to government) $0,1mln

Income Statement
No expenses since we capitalized current costs.

Cash Flow
Should I treat this as a difference in a working capital under operating cash flow?

Thanks in advance!