When an operational asset is acquired for non-cash consideration, the cost of the asset received always is measured as the book value of the non-cash consideration given up.

Question

Quizplus · Accepted Answer

The cost of the asset received when acquired for non-cash consideration is measured at the fair value of the asset received or the fair value of the consideration given up, whichever is more clearly evident and measurable. This may or may not be the book value of the consideration given up.

When an Operational Asset Is Acquired for Non-Cash Consideration, the Cost