incorrect, items that are not physical in form can be classified...

incorrect, items that are not physical in form can be classified as property plant and equipment

initial delivery and handling costs;
any costs directly attributable to bringing the asset to the location and condition necessary for it tobe capable of operating in the manner intended by management.

you say:
so now they are under construction?  "no depreciation as its still under 'construction'
the term construction effectively means 'work in progress' - ie the asset isn't finished yet.