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What Is the IFRS Treatment for Replacements Versus Repairs

Question 8

Multiple Choice

What is the IFRS treatment for replacements versus repairs?


A) Betterments are expensed because they do not extend the life of the asset.
B) Replacement of significant asset components are capitalized.
C) Repairs are capitalized because they do occur on a recurring basis.
D) A company can make a policy choice on the treatment of these expenditures.

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