A company recently replaced a significant part of equipment carried at cost.Which action would be consistent with AASB 116?
A) Include cost of replacement part in the asset's carrying amount without regard for the carrying amount of the part replaced.
B) Revalue the carrying amount of equipment before recognizing the replacement part purchased.
C) Derecognise the carrying amount of the part replaced and include cost of replacement part in the asset's carrying amount.
D) Recognise the cost of replacement part as expense as the cost is a material amount.
E) None of the given answers
Correct Answer:
Verified
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