Non-monetary transactions

Question 1

Can either be reciprocal or non-reciprocal

Answer 1

Reciprocal - exchange of non-monetary assets

Non-reciprocal - one sided transfer of a non-monetary asset

Question 2

How are non-monetary assets measured?

Answer 2

Whichever is most reliable:

• fair value of asset received
• fair value of asset given up

When both are reliable, usually the fair value of asset given up is used.

*IFRS: when both are reliable, fair value of the asset received is used. for revenue-generating transactions

Question 3

Not measured at fair value if:

Answer 3

• transaction lacks commercial substance
• exchange is an exchange of product/property held for sale
• fair value is not reliably measured
• the transaction is a non-monetary, non-reciprocal transfer to owners

Question 4

If not measured at fair value:

Answer 4

measured at the carrying amount of hte asset given up after any reduction for impairment, adjusted by the fair value of any monetary consideration received or given

Question 5

Disclosures for NMT

Answer 5

• nature of the transaction
• basis of measurement
• amount
• if applicable, related gains and losses