1. A company buys an aircraft for $9,000,000. Under civil aviation rules, the aircraft requires a major inspection every three years at a cost of $200,000. Three years after the purchase of the aircraft it undergoes its first major inspection. The costs in relation to the inspection amounted to $220,000.
2. (b) On 1 June 2009, a company spent $100,000 to replace the wall lining of one of its two furnaces. The furnace had been acquired six years previously and had a carrying value, at 1 June 2009, amounting to $420,000. Of this amount, $20,000 related to the original wall lining.
3. Question: Explain how each of these matters should be accounted for in accordance with the requirements of IAS 16.