Page 124 - Financial Accounting 1 ITC Preparation June 2018
P. 124
ITC EXAM PREP – JUNE 2018
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
124
