What's the variations between service elements and spare elements?
The Contractor shall assist the Company for the timely supply FOB of all spares in order that by means of common and normal transportation they are going to be on hand at the Site in advance of the time for the beginning of precommissioning. The Contractor shall expedite the delivery, examine the major spare components, examine all tagging of the spare elements, check invoices, and ahead one copy of every packing list to the Company as quickly as attainable after shipment. One copy of the packing listing shall be filled with every shipment. and different special objects could also be included within the Contract within the lump sum price and/or as reimbursable gadgets. However, in any case, an expert staff of the Company consisting of the required specialists in the numerous fields is required to evaluation the Contractor and/or Vendor(s) recommendations and concern ultimate Company approval for provide of spare components.
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Spare components price 7.5% of the total current price of the machinery. What may be the possible treatments of this case in relation to IAS sixteen and IAS 2.
I was considering two strategies for depreciation; Straight line over the license interval (makes sense), or UoP methodology (along with the other property). Now, I’m not sure I understood the part with “license period” accurately.
Parts that aren’t repairable are considered consumable components. Consumable components are often scrapped, or “condemned”, … Read More