Certain classes of property,plant and equipment,for example,aircraft,might comprise a number of individual component parts.How does IAS 16 paragraph 43 require these components to be accounted for?
A)The components can be measured as one asset.
B)There is a prescribed unit of measurement for recognition that must be followed.
C)Only one depreciation rate can be used for the asset.
D)Each component with a significant cost must be depreciated separately.

Question

Quizplus · Accepted Answer

IAS 16 paragraph 43 requires that each component with a significant cost must be depreciated separately when certain classes of property, plant, and equipment such as aircraft comprise a number of individual component parts. Therefore, choice D is the correct answer.

Certain Classes of Property,plant and Equipment,for Example,aircraft,might Comprise a Number