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MAJOR PLANNED PERIODIC MAINTENANCE or OVERHAUL expected to occur late in the year is, for interim reporting:
AAnticipated proportionally across earlier interim periods
BAlways recognised at year-start
CNOT anticipated unless an event has caused the entity to have a legal or constructive obligation
DCapitalised in the interim BS
Answer & Solution
Correct answer: C. NOT anticipated unless an event has caused the entity to have a legal or constructive obligation
Ind AS 34 paragraph B6: mere intent or necessity does not create an obligation. Major overhauls are recognised only when an obligation exists. Otherwise they hit the period in which incurred.
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