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a. On 1 September 2019 , a company paid GHS80,000 to replace the wall lining of one of its furnaces. The furnace had been acquired
a. On 1 September 2019 , a company paid GHS80,000 to replace the wall lining of one of its furnaces. The furnace had been acquired several years previously and its carrying amount on 1 September 2019 (before accounting for the replacement of the lining) was GHS 320,000 . Of this amount, GHS 10,000 related to the original wall lining. b. On 1 September 2019, a company paid GHS250,000 for a major inspection of one its aircraft. It is a legal requirement that such an inspection is carried out at least once every three years. The previous inspection took place in March 2017 at a cost of GHS210,000. The carrying amount of the aircraft on 1 September 2019 (before accounting for the new inspection) was GHS1,200,000. Of this amount, GHS70,000 related to the previous inspection. Explain how each of these transactions should be accounted for in accordance with the requirements of IAS16. a. On 1 September 2019 , a company paid GHS80,000 to replace the wall lining of one of its furnaces. The furnace had been acquired several years previously and its carrying amount on 1 September 2019 (before accounting for the replacement of the lining) was GHS 320,000 . Of this amount, GHS 10,000 related to the original wall lining. b. On 1 September 2019, a company paid GHS250,000 for a major inspection of one its aircraft. It is a legal requirement that such an inspection is carried out at least once every three years. The previous inspection took place in March 2017 at a cost of GHS210,000. The carrying amount of the aircraft on 1 September 2019 (before accounting for the new inspection) was GHS1,200,000. Of this amount, GHS70,000 related to the previous inspection. Explain how each of these transactions should be accounted for in accordance with the requirements of IAS16
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