Accounting for Nonmonetary Exchanges

Question 1

An exchange has commercial substance if the future _____ ______ change as a result of the transaction

Answer 1

cash flows

Question 2

Exchanges having commercial substance has a ___ _____ approach

Answer 2

fair value

Question 3

For IFRS, exchanges of _______ assets are regarded as exchanges that generate revenue and are accounted for in the same manner as exchanges having commercial substance under GAAP

Answer 3

dissimilar

Question 4

For IFRS, exchanges of _____ assets are not regarded as exchanges that generate revenue and no gains are recognized

Answer 4

similar

Question 5

Characteristics of exchanges lacking commercial substance (2):

Answer 5

no change in cash flows OR FV cannot be determined

Question 6

If no boot is received _______ is recognized

Answer 6

no gain

Question 7

If boot is paid ________ is recognized

Answer 7

no gain

Question 8

If boot is received (2):

Answer 8

recognize proportional gain if (total boot received / the total consideration received) is less than 25%
OR
recognize whole gain if boot is 25% or more

Question 9

If there is a loss in a transaction that lacks commercial substance, the loss is recognized:

Answer 9

in full

Question 10

Whenever a nonmonetary asset is involuntarily converted to cash, the gain or loss is recognized:

Answer 10

in full