Consider the following statements in relation to IAS 16, Property plant and equipment:

1. If an item of property, plant and equipment which has been recognised as an asset needs regular major inspections, the cost of each inspection is added to the carrying amount of the asset when it occurs.

2. If an item of property, plant and equipment which has been recognised as an asset needs regular major inspections, the cost of each inspection is expensed in the statement of profit or loss when it occurs.

3. Any remaining carrying amount of the cost of the previous inspection is derecognised.

4. Any remaining carrying amount of the cost of the previous inspection is added to the carrying amount of the new inspection.