Non Monetary

Question 1

Do not use FV for non monetary if: (ASPE)

Answer 1

• Lacks commercial substance
• Exchange of products in the same line of business
• FV of both products is not reliable
• Non monetary and Non reciprocal to OWNERS

If you don’t use FV use the carrying value of asset given up

Question 2

If both assets have reliable FV use…

Answer 2

The fair value of the asset given up

Question 3

ASPE - IFRS Handbook

Answer 3

ASPE 3831

IFRS - No specific section. Use IFRS15.66

Question 4

NMT & give up cash

Answer 4

Asset received = FV of asset given up + cash given up

DR Asset  (Add both below)
CR Cash (Given up FV)
CR Asset (given up FV)

Question 5

NMT & receive cash

Answer 5

Asset received = FV of asset given up - cash

DR Asset  (Asset given up FV - Cash)
DR Cash (Amount paid)
CR Asset (Given up FV)

Question 6

Donations

Answer 6

Still record at FV of asset donating (what it would usually sell for)
DR donation
CR Revenue