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Stephen Widberg.
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Noah098
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sir can i know why replacement parts of an asset are capitalised?
inspection i understand needs to be capitalised as the asset will be inoperable without those inspections.
but am struggling understand why replacement parts are capitalised? the asset would still be operable without those parts being replaced! so then capitalise replacement parts?
Stephen Widberg
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If an airline buys a new engine for a plane it is PPE and will be capitalised and depreciated.
Noah098
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