Question

The cost of a nonmonetary asset acquired in exchange for another nonmonetary asset when the exchange has commercial substance is usually recorded at

Answer 1

Fair Value of Non- Monetary Asset Given Up

Step-by-step explanation:

IAS 16 requires that the Fair Value of Non- Monetary Asset Given Up be the measurement cost of a nonmonetary asset acquired in exchange for another nonmonetary asset when the exchange has commercial substance.

If Fair Value of Non- Monetary Asset Given Up can not be reliably obtained then use the Fair Value of Non- Monetary Acquired to measure cost of a nonmonetary asset acquired.