Capital assets / capital components refurbishment
Capital components replaced with new one lying in store. old capital component after refurbishment is kept in Store or in plant as stand-by
Old/spare parts Item lying in store, over a period of time, quality of the same is deteriorate , hence, need refurbishment. After refurbishment, item will be kept again in store.
Since capital items are already capitalised so we can be tracked as non-valuated materials in inventory . So any repair cost on those will either be settled to main asset or to cost center as per IFRS norms.
If they are spares (ERSA- valuated) , then it would be split valuated and costs will be settled to material to target valuation type and moving average price would accordingly change.
If anyone can give me examples with accounting Cr/DR , that would be nice.
Thank you.
Regards,
Yogesh A