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derecognition of expenses


the machine has to undergo a major inspection every 2 years.  the estimated inspection cost is R25000.  The machine produced 40000 units in 2016 and 52000 in 2017.  R20000 was paid for the inspection on 30 November 2017.  The machine will produce a total of 600000 units during its useful life.   The derecognised of the inspection component that will be disclosed will be how much?

asked Apr 10 in IAS 16 - Property, Plant and Equipment by anonymous

1 Answer

0 votes
cost of the previous inspection was identified in the transaction in which the item was acquired or constructed.

or

If necessary, the estimated cost of a future similar inspection may be used as an indication of what the cost of the existing inspection component was when the item was acquired or constructed will be disclosed.
answered Apr 11 by MHAGIG Level 2 Member (4,000 points)


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