Which of the statements represents the methodology

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Problem 1: A company acquired an item of property, plant, and equipment that consists of individual components with costs that are both significant and insignificant in relation to the total cost of the item. Which of the following statements represents the methodology that should be used to measure and record depreciation expense under IFRS?

A.)The individual components may be combined and depreciated using a weighted-average useful life computed for the asset as a whole.

B.)The individual components may be combined and depreciated over the useful life of the asset based on the company's established policy for that asset category.

C.) Each component with a cost that is significant in relation to the total cost of the item should be depreciated separately; approximation techniques may be used to depreciate the cost of the remaining items that are individually insignificant.

D.) Each component with a cost that is significant in relation to the total cost of the item should be depreciated separately, and the company may elect to immediately expense the cost of the remaining items that are individually insignificant.

Reference no: EM132702015

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