Wiley GAAP 2015: Interpretation and Application of Generally Accepted Accounting Principles 2015

Chapter 54ASC 845 NONMONETARY TRANSACTIONS

PERSPECTIVE AND ISSUES

   Subtopics

   Scope and Scope Exceptions

   Overview

DEFINITIONS OF TERMS

   Source: ASC 845-10-20

CONCEPTS, RULES, AND EXAMPLES

   Types of Nonmonetary Transactions

   General Rule

   Modification of the Basic Principle

   Commercial Substance

   Nonreciprocal Transfers

   Nonmonetary Exchanges That Include Monetary Consideration (Boot)

   Exchanges of Real Estate Involving Monetary Consideration (Boot)

   Inventory Purchases and Sales with the Same Counterparty

   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

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 are not treated as nonmonetary transactions:

1. A business combination accounted for by an entity according to the provisions of ASC 805 or a combination accounted for by a not-for-profit entity according to the provisions of ASC 958-805 ...