Ch. 14 - Non-Monetary Transactions

Question 1

ASPE Typical measurement of NMT

Answer 1

1. FV of the asset given up or received, which ever is more reliable
2. If equally reliable, use FV of asset given up
3. If neither FV is reliable, the carrying value of asset given up

Question 2

ASPE excludes measurement at FV is any of the following apply:

Answer 2

1. the transaction lacks commercial substance
2. the FV of both assets (given up and received) cannot be reliably measured
3. it is a non-reciprocal transfer to owners
4. An exchange of similar items

Question 3

ASPE measurement for exchanges not using the FV

Answer 3

the carrying value of the asset given up

Question 4

Commercial Substance
- what is commercial substance
2 criteria

Answer 4

• a transaction that changes the entities future cash flows
  1. change in the risk, timing or amount of future cash flows
  2. the entity specific value of the new asset differs from the asset given up

Question 5

ASPE required disclosure

Answer 5

1. nature of the transaction
2. basis of measurement
3. amount
4. related gains and losses

Question 6

IFRS - NMT measurement

Answer 6

measures the transaction at the FV of the asset received