Wiley GAAP: Financial Statement Disclosure Manual

57ASC 845 NONMONETARY TRANSACTIONS

1. Authoritative Literature
   1. Subtopics
   2. Scope and Scope Exceptions
   3. Types of Nonmonetary Transactions
   4. General Rule
   5. Modification of the General Rule
   6. Commercial Substance
   7. Nonreciprocal Transfers
   8. Nonmonetary Exchanges That Include Monetary Consideration (Boot)
   9. Inventory Purchases and Sales with the Same Counterparty
      1. Measurement of the Exchange
   10. Exchange of Product or Property Held for Sale for Productive Assets
   11. Barter Transactions
2. Practice Alert
3. Presentation and Disclosure Requirements
   1. Presentation
   2. Disclosures
4. Presentation and Disclosure Examples
   1. Example 57.1: Accounting Policy for Noncash Exchanges
   2. Example 57.2: Accounting Policy for Barter Transactions Related to Advertising

AUTHORITATIVE LITERATURE

ASC 845, Nonmonetary Transactions, addresses those transactions in which no money changes hands. These transactions are most commonly associated with exchanges of fixed assets, but can also involve other items, such as inventory, liabilities, and ownership interests. They can also involve one‐way, or nonreciprocal, transfers.

This Chapter sets forth the basic structure and concepts of nonmonetary transactions, including the concept of commercial substance, rules regarding similar and dissimilar exchanges, involuntary conversions, and how to handle exchanges that include a certain amount of monetary consideration.

Subtopics

ASC 845, Nonmonetary Transactions, has only one Subtopic:

• ASC 845‐10, Overall, which includes five Subsections:
  • General ...