Non-Monetary Transactions

Question 1

Non-monetary transactions are measured at what?

Answer 1

An asset valued at the FMV of the asset given up unless it is less reliable than the FMV of the asset received

Question 2

When is the asset not measured at FMV of the asset in NMT transactions

Answer 2

1. No commercial substance
2. Similar assets exchanged
3. reciprocal transfer to the owners as part of the restructuring and or liquidation
4. FMV of neither asset can be reliably measured

Question 3

What are the critiria for commercial Susbtance

Answer 3

1. The configuration of the future cash flows of the asset received differs significantly from the configuration of the future cash flows of the asset given up.
2. The entity-specific value of the asset received differs significantly from the entity-specific value of the asset given up.