The costs of a major inspection or overhaul should be expensed as incurred except if:
a) the components which are being replaced or restored have already been previously identified and depreciated so as to reflect the consumption of the economic benefits provided by them;
b) it is probable that future economic benefits will flow from the asset being inspected or overhauled; and
c) the cost of the major inspection or overhaul can be measured reliably.
Therefore, if these three criteria are met, the expenditures should be capitalised as a component of the asset