Certain classes of property,plant and equipment,for example,aircraft,might comprise a number of individual component parts.How does AASB 116 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

AASB 116 paragraph 43 requires each significant component with a separate cost to be depreciated separately as a separate component of property, plant, and equipment. This means that each component must be accounted for separately in the financial statements and have its own depreciation rate. Therefore, Option D is the best choice.

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