F2 - Accounting for Nonmonetary Exchanges Flashcards
1
Q
When are losses recognized in nonmonetary exchanges?
A
A loss is recognized immediately, because assets received should not be valued at more than their cash equivalent price
2
Q
How are gains/losses calculated in nonmonetary exchanges that have commercial substance?
A
FV of the asset given up less the BV of the same asset
3
Q
When the transaction lacks commercial substance, what value is used by the reporting entity?
A
The BV of the asset given up (with changes due to boot paid/received)
