Page 27 - PowerPoint Presentation

PROPERTY, PLANT AND EQUIPMENT

Exchange (swap) of PPE items (IAS 16.24)

• (b) the entity-specific value of the portion of the entity's

operations affected by the transaction (after tax cash

flows) changes as a result of the exchange; and

• (c) the difference in (a) or (b) is significant relative to the

fair value of the assets exchanged.

• When the fair values of both the acquired asset and

the asset given up can be measured reliably, then

the fair value of the asset given up is used to

measure the cost of the asset received unless the

fair value of the asset received is more evident, in

which case it can be used.

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