Which statement is incorrect regarding “components depreciation”? a. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of item shall be depreciated separately b. An entity allocates the amount initially recognized in respect of an item of property, plant and equipment to its significant parts and depreciates separately each such part c. It may be appropriate to depreciate separately the airframe and engines of an aircraft, whether owned or subject to a finance lease d. An entity may not depreciate separately the parts of an item that do not have a cost that is significant in relation to the total cost of the item
Which statement is incorrect regarding “components depreciation”? a. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of item shall be depreciated separately b. An entity allocates the amount initially recognized in respect of an item of property, plant and equipment to its significant parts and depreciates separately each such part c. It may be appropriate to depreciate separately the airframe and engines of an aircraft, whether owned or subject to a finance lease d. An entity may not depreciate separately the parts of an item that do not have a cost that is significant in relation to the total cost of the item
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which statement is incorrect regarding “components
a. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total
cost of item shall be depreciated separately
b. An entity allocates the amount initially recognized in respect of an item of property, plant and equipment to
its significant parts and depreciates separately each such part
c. It may be appropriate to depreciate separately the airframe and engines of an aircraft, whether owned or
subject to a finance lease
d. An entity may not depreciate separately the parts of an item that do not have a cost that is significant in
relation to the total cost of the item
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