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11606 |
Non-monetary asset exchange
IAS 16-pr24
General principle
Cost of property, plant and equipment
by non-monetary asset exchange
is measured at fair value
Exceptions
If (1) or (2) is the case,
carrying amount of asset given up is used
to measure the cost of PP&E acquired
(1) exchange lacks commercial substance
(2) fair value is not reliably measurable
IAS 16-pr25
Commercial substance
Exchange has commercial substance
if (3) or (4) is the case
(3) the configurations of cash flows are different
for assets received and given up
(4) exchange transaction changes entity-specific value of the operation
that is affected by exchange
Configuration of cash flows refers to
(1) amount
(2) timing
(3) risk
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International Accounting
Standards (IAS)