Non-monetary transactions Flashcards
1
Q
NMT
A
- exchanges that occur between parties where both items exchanged are non-monetary in nature
2
Q
NMT can be reciprocal or non-reciprocal
A
- Reciprocal: an exchange of non-monetary assets
- Non-reciprocal: one sided transfer of a non-monetary asset (donations)
3
Q
Asset transfer in NMT
A
- measured at the FV of the asset given up or the asset received whichever is more reliable
- when both reliably measured = FV of asset given up is used
4
Q
If NMT not measured at FV
A
- measured at CV of the asset given up, adjusted by the FV of any cash consideration
5
Q
Exclusion to not measure at FV
A
1) lack commercial substance
2) exchange of product/property is same ordinary business
3) neither FV of asset given up or received is reliably measured
4) non-monetary non-reciprocal transfer to owners
6
Q
Commercial substance
A
- exists when:
- configuration of the future cash flow of the asset received differs from those of the asset given up
- the entity specific value of the asset received differs significantly from the entity specific value of the asset given up
7
Q
Exchange of similar items
A
- excluded from FV because product is to be sold in similar business to customers not initially involved
8
Q
When FV not easily found
A
- use comparable market transactions
9
Q
NMT disclosures
A
- nature
- basis of measurement
- amount
- related G/L
10
Q
partial monetary consideration
A
- When measured at FV: cash is included as part of FV of asset given up/received
- When measured at CV:
- if paying cash: measure non-monetary asset received at CV of asset given up + FV of monetary asset
- if receiving cash: measure non-monetary asset received at CV of asset given up - FV of cash received
11
Q
IFRS
A
- for NMT generating revenue and both received and given up FV reliably measured, the revenue is measured at FV received
- However, for ASPE the FV will always favor the FV of the asset given up
