04-20-2009, 02:01 PM
Dear M_zeeshanuddin_sa
Please go through the IFRS details. IAS 16 explains the following
If an asset is acquired in exchange for another asset (whether similar or dissimilar in nature), the cost will be measured atthe fair value unless
(a) the exchange transaction lacks commercial substance or (b) the fair value of neither the asset received nor the asset given up is reliably measurable. If the acquired item is not measured at fair value, its cost is measured at the carrying amount of the asset given up. [IAS
Please go through the IFRS details. IAS 16 explains the following
If an asset is acquired in exchange for another asset (whether similar or dissimilar in nature), the cost will be measured atthe fair value unless
(a) the exchange transaction lacks commercial substance or (b) the fair value of neither the asset received nor the asset given up is reliably measurable. If the acquired item is not measured at fair value, its cost is measured at the carrying amount of the asset given up. [IAS