In Ind AS 16 - Para 70, it is mentioned that from the carrying cost of the asset, the entity should derocognize the carrying amount of the replacement part and some other rules regarding the same were mentioned.
But what is the intention behind it? In other words, why are we derocognising the carrying amount of the replacement part?
Because when we replace part we capitalise it. But value of original part is already included in value of asset but such part is replaced so we need to derecognise value of original part, such accounting treatement was not available in AS-6 depreciation.
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