11-03-2009, 07:53 PM
70
<font color="purple">If, under the recognition principle in paragraph 7, an entity recognises in the carrying amount of an item of
property, plant and equipment the cost of a replacement for part of the item, then it derecognises the carrying
amount of the replaced part regardless of whether the replaced part had been depreciated separately. <font color="red">If it is not
practicable for an entity to determine the carrying amount of the replaced part, it may use the cost of the
replacement as an indication of what the cost of the replaced part was at the time it was acquired or constructed.</font id="red"></font id="purple">
Can Any one Explain this By any Example.Especially Last line.
<font color="purple">If, under the recognition principle in paragraph 7, an entity recognises in the carrying amount of an item of
property, plant and equipment the cost of a replacement for part of the item, then it derecognises the carrying
amount of the replaced part regardless of whether the replaced part had been depreciated separately. <font color="red">If it is not
practicable for an entity to determine the carrying amount of the replaced part, it may use the cost of the
replacement as an indication of what the cost of the replaced part was at the time it was acquired or constructed.</font id="red"></font id="purple">
Can Any one Explain this By any Example.Especially Last line.
