sparepart and equipment

There's not likely to be much of an average for a spare part, nor for equipment. I suggest the equipment should be capitalised on acquisition (unless the entity has a policy of expensing below an immaterial amount) Spare parts - probably immaterial - even though they may be very expensive in themselves, in the context of the asset for which they are spares they are probably immaterial. I suggest that they too are expensed as they are purchased

Hi mike, I think you didn't get my meaning. The equipment and spare part are inventory. Each is valued separetly using wacc. Issue raised by auditor both should have been valued in one not separetly. Example you have equipment A and same equipment as spare part. Auditors opinion is to value them in one not separetly. Want to know your opinion.

"you have equipment A and same equipment as spare part" How do you expect me to give you a sensible answer when you give me half a question???? You say yourself - they are the same - so treat then the same. They're both inventory and should be dealt with as one