Examples of subsequent costs recognised in the carrying amount of an item of property,plant and equipment include:

Question

Quizplus · Accepted Answer

Option B refers to the cost of maintenance and repair, which is recognized in the carrying amount of an item of PPE, while option C refers to the cost of replacement of components that are expected to be replaced periodically, such as aircraft interiors. Option A is an operating expense and not recognized in the carrying amount of an item of PPE.

Examples of Subsequent Costs Recognised in the Carrying Amount of an Item