F3 - M6 - Nonmonetary Transactions

Question 1

Under U.S. GAAP, exchanges having ________ if they affect future cash flows.

Answer 1

commercial substance

Question 2

If, exchanges have commercial substance recognize all gains and losses based on the ______ assets _______ in comparison to the ________assets ________

Answer 2

old assets carrying value, comparison to old assets fair value

Question 3

Under ______, nonmonetary exchanges are characterized as exchanges of similar assets and exchanges of dissimilar assets

Answer 3

IFRS

Question 4

Exchanges of dissimilar assets are regarded as exchanges that generate ________ and are accounted for in the same manner as exchanges having commercial substance under U.S. GAAP.

Answer 4

generate revenue

Question 5

For IFRS, Exchanges of similar assets are not regarded as exchanges that generate revenue and no_____ are recognized.

Answer 5

no

Question 6

Under U.S. GAAP, exchanges lacking commercial substance do not change future cash flows. Losses are ________

Answer 6

recognized

Question 7

Under U.S GAAP, _____ are not recognized in these exchanges unless _______ is received.

Answer 7

Gains; boot (cash)

Question 8

If boot is less than ____ percent of total consideration, then recognize gain in proportion to the boot received.

Answer 8

25

Question 9

If boot is greater than ____ percent of total consideration, recognize _________.

Answer 9

25, All gains

Question 10

Whenever a nonmonetary asset is involuntarily converted (e.g., fire, loss, theft, or condemnation) to cash, the ___________ is recognized for financial accounting purposes.

Answer 10

entire gain or loss