# ASC 610-30-25: Other Income — Gains and Losses on Involuntary Conversions — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/610/30/#25-recognition)

Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.

Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure.

Source downloaded (UTC): 2026-09-10T00:55:26.349Z to 2026-09-10T00:55:26.349Z

Record version: sha256:ac72185eebb8df537c85e89b8a8bc2f31166586a36623e5b4702bdbe07b8f803

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 610-30-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/610/30/#25-recognition)

SEC content: no

##### [610-30-25-1](https://asc.understandingaccounting.org/asc/610/30/#610-30-25-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:55:26.349Z to 2026-09-10T00:55:26.349Z

Record version: sha256:c39757dfa3fbb57b18a03a0763314e5ce4224c872a14c393600c9fbc6bc04bec

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


As used in this Subtopic, the term _cost_ refers to the cost of a nonmonetary asset or to its carrying amount, if different.

##### [610-30-25-2](https://asc.understandingaccounting.org/asc/610/30/#610-30-25-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:55:26.349Z to 2026-09-10T00:55:26.349Z

Record version: sha256:cd75760cf073cf153922ff7f6d0219f419fc4aac5a33d2dd2cebb86156184af9

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


An involuntary conversion of a nonmonetary asset to monetary assets and the subsequent reinvestment of the monetary assets is not equivalent to an exchange transaction between an entity and another entity. The conversion of a nonmonetary asset to monetary assets is a monetary transaction, whether the conversion is voluntary or involuntary, and such a conversion differs from exchange transactions that involve only nonmonetary assets. To the extent the cost of a nonmonetary asset differs from the amount of monetary assets received, the transaction results in the realization of a gain or loss that shall be recognized.

##### [610-30-25-3](https://asc.understandingaccounting.org/asc/610/30/#610-30-25-3)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:55:26.349Z to 2026-09-10T00:55:26.349Z

Record version: sha256:d47ab5e6962143a786b465d060ae928fe8f8c67d910e79b0bee1c127003b9773

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Involuntary conversions of nonmonetary assets to monetary assets are monetary transactions for which gain or loss shall be recognized even though an entity reinvests or is obligated to reinvest the monetary assets in replacement nonmonetary assets. However, the requirement of this Subtopic with respect to gain recognition does not apply to an involuntary conversion of a last-in, first-out (LIFO) inventory for which replacement is intended but not made by year-end and the taxpayer does not recognize gain for income tax reporting purposes. Paragraph [270-10-45-6(b)](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-6) provides an exception for the liquidation of a LIFO inventory at an interim date if replacement is expected by year-end. Accordingly, that exception applies to an involuntary conversion of a LIFO inventory if replacement is expected by year-end.

##### [610-30-25-4](https://asc.understandingaccounting.org/asc/610/30/#610-30-25-4)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:55:26.349Z to 2026-09-10T00:55:26.349Z

Record version: sha256:4a9d1ebf89d91e3bd74262a93efae30d715a7dc473c952a4413e02ac6be8b7e0

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


In some cases, a nonmonetary asset may be destroyed or damaged in one accounting period, and the amount of monetary assets to be received is not determinable until a subsequent accounting period. In those cases, gain or loss shall be recognized in accordance with Topic 450.