Ability to view replaced serial number under asset hierarchy

Hi team,

Could you please confirm my understanding?

Suppose there is a PTO model as the asset parent, under that, a child asset is damaged and is replaced by the implementing company for the customer, so the asset hierarchy that we can see from the Installed Base Asset work area should now represent the new asset that is shipped to the customer (with the new serial number), and the old asset should not be shown in the asset hierarchy any further. Is this the current behavior?