You have categorized in two categories, critical & capital spare. We can define those spares as insurance spare. Business maintain some important/capital spare of their plant/gear for future use (in case of any break down etc) to avoid stoppage of production. Hence these spare ought to be capitalized along with mother asset for which these spare half has been bought and therefore should be depreciated together with mother asset, even it is lying within the warehouse.
Does it imply that when the license interval expires, you should give these drilling bits and different tools back to authorities? So, you purchase an tools at your own cost, use it (or store it as spare components) through the license period and then give it to the federal government? S. Dear Silvia, I would really recognize your thought in this.
Spare components cost 7.5% of the entire current value of the machinery. What may be the attainable remedies of this case in relation to IAS 16 and IAS 2.
However, if you hold the spare half for use as a alternative half at some future time and you might be sure that this half will be put in and put into use at … Read More