2nd element of cost is basically any capital expenditure that you incur to improve an existing asset.
Users can manage this by using AssetAccountant™'s 'Additional Cost' functionality, which adds more cost to the base asset, then depreciates the total summed cost of the asset.
A note for our Australian subscribers:
There is a nuance with 2nd element from a Australian Tax perspective which is that you can claim depreciation on the asset for the whole year in which the additional cost was incurred. So if you are capitalising for tax and accounts and want different dates, you can achieve this by adding 2 extra costs in AA - one for tax and one for accounts with the different effective dates.