BC25 Under SFAS 144, long-lived assets that are to be exchanged for similar productive assets cannot be classified as held for sale. They are regarded as disposed of only when exchanged. The Basis for Conclusions on SFAS 144 explains that this is because the exchange of such assets is accounted for at amounts based on the carrying amount of the assets, not at fair value, and that using the carrying amount is more consistent with the accounting for a long-lived asset to be held and used than for a long-lived asset to be sold.

BC26 Under IAS 16 Property, Plant and Equipment, as revised in 2003, an exchange of assets is normally measured at fair value. The SFAS 144 reasoning for the classification of such assets as held for sale does not, therefore, apply. Consistently with IAS 16, the IFRS treats an exchange of assets as a disposal and acquisition of assets unless the exchange has no commercial substance.

BC27 The FASB has published an exposure draft proposing to converge with the requirements in IAS 16 for an exchange of assets to be measured at fair value. The exposure draft also proposes a consequential amendment to SFAS 144 that would make exchanges of assets that have commercial substance eligible for classification as held for sale.