ASC Topic 845
Nonmonetary Transactions
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ASC 845 governs nonmonetary transactions — reciprocal exchanges of nonmonetary assets and nonreciprocal transfers to owners or others. The operative guidance is in ASC 845-10: the default is to measure the asset received at the fair value of the asset surrendered (or the asset received, if more clearly evident) and recognize gain or loss (845-10-30-1), unless one of three exceptions requires carryover of the recorded amount — fair value not determinable within reasonable limits, an exchange of product held for sale to facilitate sales to customers, or a transaction lacking commercial substance (845-10-30-3, 845-10-30-4). Special rules cover boot (25 percent threshold; pro rata gain to the boot receiver, full loss recognition), inventory purchases and sales with the same counterparty, spinoffs and other distributions to owners, and disclosure of the nature, basis of accounting, and gains or losses (845-10-50-1). The industry subtopics for airlines (845-908, slots recorded under Topic 845) remain, while the broadcaster (845-920), film (845-926), and software (845-985) barter subtopics were entirely superseded by ASU 2014-09, so those exchanges are now analyzed under ASC 606's noncash consideration guidance and ASC 845-10.
Subtopics
- 10Overall128 ¶
ASC 845-10 governs nonmonetary transactions — reciprocal exchanges of nonmonetary assets and nonreciprocal transfers of nonmonetary assets to owners or others. The default rule is that such transactions are measured at the fair value of the asset surrendered (or received, if more clearly evident) with gain or loss recognized (845-10-30-1), subject to three exceptions requiring carryover (recorded amount) accounting: fair value not determinable within reasonable limits, an exchange of product held for sale to facilitate sales to customers, or a transaction lacking commercial substance (845-10-30-3). Special subsections address purchases and sales of inventory with the same counterparty, barter credits, and exchanges involving boot.
- 908Airlines3 ¶
This Subtopic addresses how airlines account for exchanges of take-off and landing slots. Slots received in an exchange with another airline are nonmonetary assets and must be recorded under the general nonmonetary transaction guidance in Topic 845 (845-908-25-1), with related intangible asset guidance in Subtopic 908-350. Its scope is the same as the airline industry Overall Subtopic scope in Section 908-10-15.
- 920Entertainment—Broadcasters6 ¶
ASC 845-920 formerly provided nonmonetary-transaction guidance for broadcasters, principally barter transactions in which broadcasters exchanged advertising time for goods, services, or program material. Every substantive paragraph in the subtopic (Sections 05, 15, 25, and 30) was superseded by ASU 2014-09 (the revenue standard). As a result, the subtopic contains no remaining guidance, and barter/nonmonetary exchanges involving broadcasters are now analyzed under ASC 606 (with noncash consideration measured at fair value) and the general nonmonetary guidance in ASC 845-10.
- 926Entertainment—Films4 ¶
ASC 845-926 was the industry-specific guidance applying nonmonetary-exchange principles to film entities (e.g., barter or exchange transactions involving film licensing rights). Every remaining paragraph in the subtopic — the overview (845-926-05-1), scope (845-926-15-1), and recognition (845-926-25-1) guidance — was superseded by ASU 2014-09, the revenue recognition standard. As a result, the subtopic contains no operative guidance; exchanges of film rights for consideration other than cash are now analyzed under ASC 606 (and related film cost guidance in ASC 926).
- 985Software19 ¶
ASC 845-985 formerly provided industry guidance on nonmonetary (barter) exchanges involving software, principally software revenue recognition in exchanges of software products or licenses. Every paragraph in this subtopic — scope, recognition, and implementation guidance — was superseded by ASU 2014-09 (Revenue from Contracts with Customers). The subtopic therefore contains no operative guidance; nonmonetary consideration in software arrangements is now addressed under ASC 606 (noncash consideration) and general nonmonetary guidance in ASC 845-10.