When an intangible asset is acquired by an exchange of assets, which of the following measures will need to be considered in the determination of cost?

A) The initial cost of the asset given up.
B) The fair value of the asset given up.
C) The replacement value of the asset received.
D) The carrying amount of the asset received.

Exchange of Assets

A transaction where companies swap ownership of assets without the use of cash, often to achieve operational efficiencies or strategic objectives.

Fair Value

is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Replacement Value

The cost to replace an asset with another of similar function and efficiency.