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spares

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18 May 2016 while procuring machineries, spares for two years normal operations are also procured. whether such spares are inventory or capital asset?

19 May 2016 Spare parts and stand by equipment can be classified capital expenditure if the entity expects to use them for more than one period and also if they can be used only in connection with capital asset.
In other cases, spares are treated as inventory if they are used for operations



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