Oil & Gas
Facilities Turnaround / Shutdown — Major Maintenance
Recording the cost of a planned major maintenance turnaround on a production facility.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Turnaround / Overhaul Asset (PPE Component) | Asset (+) | 25,000,000.00 | - |
| Cash / Contractor Payable | Asset/Liability (-) | - | 25,000,000.00 |
💡 Accountant's Note
Major turnarounds (typically every 4-6 years) involve complete shutdown for inspection and refurbishment. Under component accounting (IAS 16), turnaround costs are capitalized as a separate component and depreciated over the interval to the next turnaround.
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