Wiley GAAP 2019

58ASC 845 NONMONETARY TRANSACTIONS

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 interest¹

    (ASU 845-10-05-1)

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.
2. A transfer of nonmonetary assets solely between entities or persons under common control, such as between a parent and its subsidiaries or between two subsidiaries of the same parent, or between a corporate joint venture and its owners.
3. Acquisition of nonmonetary assets or services on issuance of the capital stock of an entity under ASC 718-10 and ASC 505-50.
4. Stock issued or received in stock dividends and stock splits.
5. A transfer of assets to an entity in exchange for equity interest in that entity (except for certain exchanges of a nonfinancial asset for a noncontrolling ownership interest).²
6. A pooling of assets in a joint undertaking intended to find, develop, or produce ...