SIC-23 — Property, Plant and Equipment – Major Inspection or Overhaul Costs


  • IAS 16 Property, Plant and Equipment


  • Issued: July 2000
  • Effective date: 15 July 2000
  • Superseded by, and incorporated into, IAS 16 Property, Plant and Equipment (Revised 2003), effective for annual periods beginning on or after 1 January 2005.

Summary of SIC-23

SIC-23 confirms that the cost of a major inspection or overhaul generally should be expensed as incurred. The exception is where the enterprise treats the cost of a major inspection or overhaul as a separate "component" asset for accounting purposes and depreciates that component to reflect the consumption of benefits resulting from the major inspection or overhaul.

Click for IASC Press Release on SIC-23 (PDF 36k)

Correction list for hyphenation

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