Component approach

The component approach (component approach) is a requirement for the assessment and accounting of fixed assets (property, plant and equipment) to IAS / IFRS and is in IAS 16 (rev. 2003) regulated.

The methodical breakdown of the physical asset for purposes of accounting valuation into individual components and their separate valuation is characteristic.

After IAS 16:43 is the acquisition value or which are cost to distribute an asset necessarily to individual components, if this significantly (significant) in relation to display to the total asset value are of value as. (Example from IAS 16.44: an airplane and its engines).

Thus, the accounting party must first determine the total value of the property, plant and equipment and then break it down into essential components. A method for determining the materiality of components or even quantitative limits were not prescribed.

According to IAS 16.45, it is also free to aggregate essential components of an asset with the same useful life and depreciation method. The depreciation expense for the sum of the same components is determined on this basis.

As part of the component approach, the capitalization of spare parts (IAS 16.13) and larger maintenance expenses (IAS 16.14) was made possible as subsequent acquisition costs. (Example aircraft: replacement of the engine after a certain number of flying hours.) The depreciation period for maintenance costs usually extends to the next planned major maintenance.

Excluded from the accounting are z. B. lower maintenance and service costs. These are to be recognized as expenses.

According to the Commercial Code , the asset would have to be accounted for as an asset using the aggregate approach. The depreciation expense is therefore calculated on the basis of the total asset.