How to Account for Spare Parts underneath IFRS
Thank you a lot on your reply Silvia! Yes, appropriate – when the license expires, the government owns the inventory (it does not belong to us). You might say, we only have the best to use these belongings. We and the companions of the licence spend X quantity of $ on the spare parts, however we get cost recovery of our expenditures through “cost oil” (we ger oil volumes to cover our prices).
REXBO automotive spare components catalogue
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Utilizing this info, you possibly can higher resolve which parts need to be saved available. Your spare components stock doesn’t have to be all-encompassing to be effective.
You have categorized in two classes, important & capital spare. We can define those spares as insurance coverage spare. Business keep some crucial/capital spare of their plant/gear for future use (in case of any break down and so forth) to keep away from stoppage of production. Hence these spare should be capitalized together with mom asset for which these spare half has been bought and therefore ought to be depreciated along with mother asset, even it is mendacity within the warehouse.
They expect plant managers to establish ways to reduce … Read More