Ind as 16

Rahul Jain (Student) (21 Points)

24 September 2018  

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?