Para 8, IAS16 – Spare parts and servicing gear are acknowledged in accordance with IFRS when they meet the definition of PPE. in any other case, such items are categorised as stock.
Working from this info and factoring in lead times, you can decide the price of an surprising shutdown. Then examine that to the cost of purchasing and storing alternative components. You can make an knowledgeable choice based mostly on this evaluation.
Spares would come with all spare elements of machines, accessories used on machines, lubricants and miscellaneous items similar to emery paper and chalk powder. The problem arises as a result of management of spare elements stock is essentially different from administration of uncooked supplies and in process stock. The methods relevant to managing direct supplies are not relevant to managing spare elements. The most seen characteristic of spare components stock is the big selection. There are a number of thousand gadgets each with completely different specification, for different necessities and completely different behavior in terms of consumption fee etc.
When submitting bid analyses for engineered tools, the Contractor shall also submit priced spare elements listing(s) including lubricants, chemicals, etc. and recommended spare parts list for begin-up and … Read More