Day-to-day servicing

Learning objectives

• Distinguish day-to-day servicing from expenditure that may be capitalised.L1, L2
• Record a day-to-day servicing expense.L1

Normative references

• IAS 16 §12Day-to-day servicing (labour, consumables, small parts): recognised in profit or loss, not in the carrying amount.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• While reviewing an industrial entity's property, plant and equipment additions for the year, you note the capitalised expenditure below. Which item should have been recognised as an expense?L2