AASB 116 Property, Plant and Equipment 23-28: Measurement of cost: use the cash price equivalent, recognising any excess over normal credit terms as interest; measure assets acquired in non-monetary exchanges at fair value unless the exchange lacks commercial substance or neither fair value is reliably measurable; government grants may reduce the carrying amount

What does 23-28 require?

Cost is what the asset would have cost for cash on the recognition date; any excess paid because settlement runs past normal credit terms is interest over the credit period unless AASB 123 allows it to be capitalised. An asset obtained in exchange for one or more non-monetary assets, or a mix of monetary and non-monetary assets, is measured at fair value unless the swap lacks commercial substance or no reliable fair value exists for either side of it; where fair value is not used, cost is the carrying amount of the asset surrendered. A swap has commercial substance when the cash flow profile (risk, timing, amount) of what is received differs from that of what is surrendered, or the entity-specific value (post-tax) of the affected part of the business changes, and the difference is significant relative to the fair values exchanged. Fair value is reliably measurable when the range of reasonable estimates is narrow or the probabilities within the range can be assessed; where both sides can be measured, the surrendered asset's fair value is used unless the incoming asset's fair value is more clearly evident. Government grants may be deducted from the carrying amount under AASB 120.