Wiley GAAP 2014: Interpretation and Application of Generally Accepted Accounting Principles

54   ASC 845 NONMONETARY TRANSACTIONS

Perspective and Issues

Subtopics

Scope and Scope Exceptions

Overview

Definitions of Terms

Concepts, Rules, and Examples

Types of Nonmonetary Transactions

General Rule

Modification of the Basic Principle

Commercial Substance

Recognition of gains or losses

Nonreciprocal Transfers

Example of accounting for a nonreciprocal transfer with a nonowner

Example of an exchange involving no boot

Nonmonetary Exchanges that Include Monetary Consideration (Boot)

Example of an exchange involving no commercial substance and boot

Exchanges of Real Estate Involving Monetary Consideration (Boot)

Inventory purchases and sales with the same counterparty

Determining whether transactions constitute a single exchange

Example of counterparty inventory transfers

Exchange of Product or Property Held for Sale for Productive Assets

Exchanges Involving Assets that Constitute a Business

Barter Transactions

Involuntary Conversions

Deferred Income Taxes

Summary

PERSPECTIVE AND ISSUES

Subtopics

ASC 845, Nonmonetary Transactions, has only one subtopic:

• ASC 845-10, Overall, which includes five Subsections:
  • General
  • Purchases and sales of inventory with the same counterparty
  • Barter transactions
  • Exchanges involving monetary consideration
  • Exchanges of a nonfinancial asset for a noncontrolling ownership interest.

Scope and Scope Exceptions

Several variants of noncash transactions are governed by ASC 845. ASC 845-10-15-4 lists scope exceptions. The following types of transactions ...