alleryStart learning →Spares meeting the PPE definition follow which standard?
AAS 4 Contingent Liabilities
BAS 7 Construction Contracts
CAS 10 Fixed Assets (PPE)
DAS 9 Revenue Recognition
Answer & Solution
Correct answer: C. AS 10 Fixed Assets (PPE)
Such spares are capital in nature, so they follow the PPE standard and not the inventory standard.
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