If the cost of the PP and E acquired equals the book value of the PP and E surrendered , there is no gain or loss ( nor a revenue or other financing source ) , because the exchange of one asset for another of equal value does not provide a net inflow of resources .
PP and E acquired cost equals book value of PP and E surrendered ; therefore , there isn 't a gain or a loss because there 's no net inflow of resources with exchanging assets for another one of the same value .