Page 15 - Finac1 Test 3 slides - 1. Property, Plant and Equipment
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TEST 3 PREPARATION
EXAMPLE Components
Cost of aircraft = R2 000 000
45% Frame etc. (20 years)
55% Engine (every 5 years)
A:The engine is replaced after 4 years at a cost of R1 300 000
B:The engine was never identified as a separate component.
Calculate deemed CA of component at derecognition?
1 300 000 – (1300 000/20 x 4 = 260 000) = R1 040 000
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