An asset (e.g., investment) is recognized in the balance sheet if future economic cost savings
are likely and the value can be measured reliably. Investments are capitalized and accounted
for by depreciation in the profit and loss account, if they bear a future benefit, otherwise they
are immediately expensed. As a rule, expenses which do not lead to future economic cost
savings should be expensed in the year in which they occur. End-of-pipe technologies qualify
as assets as they are required by regulatory authorities to continue with production. Their
value can easily be measured as they are typically stand-alone treatment facilities.