level: Non-Monetary Exchange
Questions and Answers List
level questions: Non-Monetary Exchange
| Question | Answer |
|---|---|
| If the exchange HAS commercial substance, what amount of G/L are recognized? | All G/L recognized if they have commercial substance. |
| If the exchange does NOT have commercial substance, what amount of G/L are recognized? | ALL LOSSES RECOGNIZED IMMEDIATELY. No Boot= No Gain, FV<25% Paid= No Gain, FV<25% Rec= Proportional Gain, FV>25%= ALL Gain |
| General rule regarding FV of Non-monetary exchange transactions | FV Given = FV Received |
| If two dissimilar assets are exchanged, what amount of G/L is recognized under IFRS? | All G/L is recognized on exchange of dissimilar assets. |
| Involuntary Conversion Calculation | Payment Received - Carrying Value |