The Accounting Review Vol. 57 No. 1 1982

Nonmonetary Exchange Transactions: Clarification of APB Opinion No. 29.

James B. Hobbs¹; D. R. Bainbridge²

¹ Professor of Accounting and Management, Lehigh University. 1 · ² Assistant Professor of Accounting, Lehigh University. 2

Abstract

This paper examines and clarifies the applicability of APB Opinion No. 29 to (1) "trade-in" transactions that involve a dealer, and (2) exchange transactions that involve a "significant" amount of monetary consideration (boot). Principal findings are: The APB intended that the exception to the general accounting rule (as reflected in paragraphs 21 and 22 of the Opinion) apply to exchanges of similar nonmonetary assets only in instances where both parties to the transaction are either (a) dealers or (b) non-dealers. If an exchange involving similar nonmonetary assets results in the culmination of an earnings process for either party, the general rule applies to both parties. In addition, the Board's intent was that the exception to the general rule should apply to exchanges of similar nonmonetary assets irrespective of the amount of monetary consideration involved in the transaction.

DOI

10.2308/tar-4490280

Volume

57

Issue

1

Pages

171-175

Language

en

Sources

openalex crossref

Cite

APA 7 MLA 9 Chicago (author–date) Harvard Elsevier Harvard (JFE, JBF…) The Accounting Review Academy of Management American Marketing Association INFORMS (Management Science) Copy citation Copied ✓