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As per IAS 16:
If purchase of component of fixed asset is major part of original asset or purchase of component increase the effectiveness or live of asset then it is treated as a part of original price and treated as asset.
If purchase of component is routine purchase for small repair etc then it is treated as revenue expense.
What else can I help you with?
Is goodwill tangible asset?
goodwill must be treated as tangible asset because it holds great value for the company. but analysts treat as an intangible asset .
Is allowance for doubtful accounts a liability?
No an asset it is created as an deduction from acc. rec. and acc. rec. is counted as an asset which is Dr. and so Allowance f d.d. is counted as an Cr. but its not a liability. if it must be counted as an asset or liability, u can treat it as an opposide of asset.
How do you Treat debtors in balance sheet?
Debtors is part of current asset and shown there in balance sheet.
Does absorption costing treat fixed manufacturing overhead as a period cost?
no its a product cost
What is provision for depreciation and how do you treat it in accounts?
A provision of depreciation account is different than other accounts because it collects all of the value of depreciation within the account. In the main asset account, depreciation is not credited because it is credited into this account.
How do you treat a river in statement of financial position?
Asset
Is goodwill a tangible asset?
goodwill must be treated as tangible asset because it holds great value for the company. but analysts treat as an intangible asset .
Is goodwill tangible asset?
goodwill must be treated as tangible asset because it holds great value for the company. but analysts treat as an intangible asset .
Why company treat expenditure as asset?
Expenditures are those amounts the benefit of which is to be taken by business for more than one fiscal year that's why shown as an asset.
Is allowance for doubtful accounts a liability?
No an asset it is created as an deduction from acc. rec. and acc. rec. is counted as an asset which is Dr. and so Allowance f d.d. is counted as an Cr. but its not a liability. if it must be counted as an asset or liability, u can treat it as an opposide of asset.
How do you Treat debtors in balance sheet?
Debtors is part of current asset and shown there in balance sheet.
How do you treat fixed assets in inflation accounting?
At current Market Value
Does absorption costing treat fixed manufacturing overhead as a period cost?
no its a product cost
What is used to treat H.O.C.M Hypertrophic Obstructive Cardiomyopathy?
i have hocm how can i be treated or the problem be fixed
What is the chemical component that gives a medicine its action?
The active ingredient in a medicine is the chemical component responsible for the medicine's therapeutic effect. It is the key component that produces the intended biological response in the body to treat a specific condition or symptom.
What type of care is a stress management component that fosters mourning process and helps treat psychologic?
Pastoral care
How is sargassum seaweed taken?
This plant is a component of several Chinese formulas, including haizao yuhu tang, used to treat goiter and neixiao lei li wan, used to treat scrufuloderma.
