# ASC 845-10-05: Nonmonetary Transactions — Overall — 05 Overview and Background Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/845/10/#05-overview-and-background) 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): 2026-09-10T01:59:24.263Z to 2026-09-10T01:59:24.263Z Record version: sha256:5c8f74cf07227c99201aee1417fd2b6061b167e388ec0153750ddc7018f89765 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 845-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/845/10/#05-overview-and-background) SEC content: no ##### [845-10-05-1](https://asc.understandingaccounting.org/asc/845/10/#845-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:59:24.263Z to 2026-09-10T01:59:24.263Z Record version: sha256:f68e05e872355a73d8d5f367e156f9f60b219a0b6a644887ada16dc6e211f8ed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Nonmonetary Transactions Topic contains only the Overall Subtopic. This Subtopic includes the following four Subsections: 1. a General 2. b Purchases and sales of inventory with the same counterparty 3. c Barter transactions 4. d Exchanges involving monetary considerations 5. e [Subparagraph superseded by Accounting Standards Update No. 2017-05](https://asc.understandingaccounting.org/updates/asu-2017-05/). ##### [845-10-05-2](https://asc.understandingaccounting.org/asc/845/10/#845-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:59:24.263Z to 2026-09-10T01:59:24.263Z Record version: sha256:db56784eecfaa25a2a2a9236abe9ed052da585b5c58f2b6980870892576b5851 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Most business transactions involve exchanges of cash or other [monetary assets or liabilities](https://asc.understandingaccounting.org/glossary/m/#monetary-assets-and-liabilities "Monetary assets and liabilities are assets and liabilities whose amounts are fixed in terms of units of currency by contract or otherwise. Examples are cash, short- or long-term accounts and notes receivable in cash, and short- or long-term accounts and notes payable in cash.") for goods or services. The amount of monetary assets or liabilities exchanged generally provides an objective basis for measuring the cost of nonmonetary assets or services received by an entity as well as for measuring gain or loss on nonmonetary assets transferred from an entity. Some transactions, however, involve either of the following: 1. a An [exchange](https://asc.understandingaccounting.org/glossary/e/#exchange "An exchange (or exchange transaction) is a reciprocal transfer between two entities that results in one of the entities acquiring assets or services or satisfying liabilities by surrendering other assets or services or incurring other obligations.") with another entity (reciprocal transfer) that involves principally [nonmonetary assets or liabilities](https://asc.understandingaccounting.org/glossary/n/#nonmonetary-assets-and-liabilities "Nonmonetary assets and liabilities are assets and liabilities other than monetary ones. Examples are inventories; investments in common stocks; property, plant, and equipment; and liabilities for rent collected in advance.") 2. b A transfer of nonmonetary assets for which no assets are received or relinquished in exchange ([nonreciprocal transfer](https://asc.understandingaccounting.org/glossary/n/#nonreciprocal-transfer "Nonreciprocal transfer is a transfer of assets or services in one direction, either from an entity to its owners (whether or not in exchange for their ownership interests) or to another entity, or from owners or another entity to the entity. An entity's reacquisition of its outstanding stock is an example of a nonreciprocal transfer.")). ##### [845-10-05-3](https://asc.understandingaccounting.org/asc/845/10/#845-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:59:24.263Z to 2026-09-10T01:59:24.263Z Record version: sha256:eb8f5fdfe377c97eb3284b22974eadee23dbb9b5a63594ca51065374bdab7034 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Both exchanges and nonreciprocal transfers that involve little or no monetary assets or liabilities are referred to as nonmonetary transactions and they are presented in the General Subsections as follows: 1. a Nonreciprocal transfers with [owners](https://asc.understandingaccounting.org/glossary/o/#owners "Used broadly to include holders of ownership interests (equity interests) of investor-owned entities, mutual entities, or not-for-profit entities. Owners include shareholders, partners, proprietors, or members or participants of mutual entities. Owners also include owner and member interests in the net assets of not-for-profit entities.") 2. b Nonreciprocal transfers with other than owners 3. c Nonmonetary exchanges. #### Nonreciprocal Transfers with Owners ##### [845-10-05-4](https://asc.understandingaccounting.org/asc/845/10/#845-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:59:24.263Z to 2026-09-10T01:59:24.263Z Record version: sha256:233be4710f94ed453624edeb83cbde0f6d26c090c79e0bb5b383dd46bfc54315 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some nonmonetary transactions are nonreciprocal transfers between an entity and its owners. Examples include the following types of stockholder distributions: 1. a Marketable equity securities as dividends 2. b Marketable equity securities, to redeem or acquire outstanding capital stock of the entity 3. c Capital stock of [subsidiaries](https://asc.understandingaccounting.org/glossary/s/#subsidiary "An entity, including an unincorporated entity such as a partnership or trust, in which another entity, known as its parent, holds a controlling financial interest. (Also, a variable interest entity that is consolidated by a primary beneficiary.)"), in corporate liquidations or plans of reorganization that involve disposing of all or a significant segment of the entity (the plans are variously referred to as spinoffs, split-ups, and split-offs) 4. d Nonmonetary assets pursuant to plans of rescission or other settlements relating to a prior business combination, to redeem or acquire shares of capital stock previously issued in a business combination. #### Nonreciprocal Transfers with Other than Owners ##### [845-10-05-5](https://asc.understandingaccounting.org/asc/845/10/#845-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:59:24.263Z to 2026-09-10T01:59:24.263Z Record version: sha256:c9e97c3cdd93911476e64739854dffb828fbd2d59ddd159407e2cbfbcdfe395a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Other nonmonetary transactions are nonreciprocal transfers between an entity and entities other than its owners. Examples are the contribution of nonmonetary assets by an entity to a charitable organization and the contribution of land by a governmental unit for construction of productive facilities by an entity. #### Nonmonetary Exchanges ##### [845-10-05-6](https://asc.understandingaccounting.org/asc/845/10/#845-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:59:24.263Z to 2026-09-10T01:59:24.263Z Record version: sha256:f4e7779890ce857b86b4354470ed206d9a423f0025d3c01f6af6b47867702050 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Many nonmonetary transactions are exchanges of nonmonetary assets or services with another entity. Examples include the following: 1. a Exchange of product held for sale in the ordinary course of business (inventory) for other property as a means of selling the product to a customer 2. b Exchange of product held for sale in the ordinary course of business (inventory) for similar product as an accommodation - that is, at least one party to the exchange reduces transportation costs, meets immediate inventory needs, or otherwise reduces costs or facilitates ultimate sale of the product—and not as a means of selling the product to a customer 3. c Exchange of [productive assets](https://asc.understandingaccounting.org/glossary/p/#productive-assets "Productive assets are assets held for or used in the production of goods or services by the entity. Productive assets include an investment in another entity if the investment is accounted for by the equity method but exclude an investment not accounted for by that method. Similar productive assets are productive assets that are of the same general type, that perform the same function, or that are employed in the same line of business.")—assets employed in production rather than held for sale in the ordinary course of business - for other productive assets or for an equivalent interest in other productive assets. For example: 1. 1 Trade of player contracts by professional sports organizations 2. 2 Exchange of leases on mineral properties 3. 3 Exchange of one form of interest in an oil-producing property for another form of interest 4. 4 Exchange of real estate for real estate. #### Other Considerations ##### [845-10-05-7](https://asc.understandingaccounting.org/asc/845/10/#845-10-05-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:59:24.263Z to 2026-09-10T01:59:24.263Z Record version: sha256:dc41cdc98719e66897c118bc7a91327de8bebee93f5c97ec40ef3314ca93e6ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the General Subsections often discusses nonmonetary transactions that are required to be measured at fair value. See Topic 820 for guidance on fair value measurement. ##### [845-10-05-7A](https://asc.understandingaccounting.org/asc/845/10/#845-10-05-7A) Pending content: no Source downloaded (UTC): 2026-09-10T01:59:24.263Z to 2026-09-10T01:59:24.263Z Record version: sha256:0b0b1771a0112d2b53ca6f23f47ace448d0814ea75943af783f36799a45bb02a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Subtopic 505-60 provides guidance on the distribution of nonmonetary assets that constitute a business to owners of an entity in transactions commonly referred to as spinoffs. That Subtopic also addresses spinoff transactions in which the substance of the transaction may differ from the legal form and provides guidance on how to determine such situations and their required accounting and reporting. ### Purchases and Sales of Inventory with the Same Counterparty ##### [845-10-05-8](https://asc.understandingaccounting.org/asc/845/10/#845-10-05-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:59:24.263Z to 2026-09-10T01:59:24.263Z Record version: sha256:6a60c57b64ae56767e00b7dbae10f97e3c85b78682ec00aa10c9a8ec657b0a02 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Purchases and Sales of Inventory with the Same Counterparty Subsections provide guidance for situations in which an entity sells inventory to another entity from which it also purchases inventory to be sold in the same line of business. The inventory purchase and sales transactions may be pursuant to a single arrangement or separate arrangements, and the inventory purchased or sold may be in the form of raw materials, work-in-process, or finished goods. ### Barter Transactions ##### [845-10-05-9](https://asc.understandingaccounting.org/asc/845/10/#845-10-05-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:59:24.263Z to 2026-09-10T01:59:24.263Z Record version: sha256:fca7e61cb57ac1c8d80f88f3535d572d04398cacf2d981b566584a63b1344cdc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Barter Transactions Subsections provide guidance on barter transactions and barter credits. ##### [845-10-05-10](https://asc.understandingaccounting.org/asc/845/10/#845-10-05-10) Pending content: no Source downloaded (UTC): 2026-09-10T01:59:24.263Z to 2026-09-10T01:59:24.263Z Record version: sha256:69390dbbd5c76264c75494d19802cea8d5e6f3c16304a55e4260fbc8d355b27e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In a barter transaction involving barter credits, an entity enters into a transaction to [exchange](https://asc.understandingaccounting.org/glossary/e/#exchange "An exchange (or exchange transaction) is a reciprocal transfer between two entities that results in one of the entities acquiring assets or services or satisfying liabilities by surrendering other assets or services or incurring other obligations.") a [nonmonetary asset](https://asc.understandingaccounting.org/glossary/n/#nonmonetary-assets-and-liabilities "Nonmonetary assets and liabilities are assets and liabilities other than monetary ones. Examples are inventories; investments in common stocks; property, plant, and equipment; and liabilities for rent collected in advance.") (for example, inventory) for barter credits. Those transactions may occur directly between principals to the transaction or include a third party whose business is to facilitate those types of exchanges (for example, a barter entity). The barter credits can be used to purchase goods or services, such as advertising time, from either the barter entity or members of its barter exchange network. The goods and services to be purchased may be specified in a barter contract or limited to items made available by members of the exchange network. Some arrangements may require the payment of cash in addition to the barter credits to purchase goods or services. Barter credits also may have a contractual expiration date, at which time they become worthless. ### Exchanges Involving Monetary Consideration ##### [845-10-05-11](https://asc.understandingaccounting.org/asc/845/10/#845-10-05-11) Pending content: no Source downloaded (UTC): 2026-09-10T01:59:24.263Z to 2026-09-10T01:59:24.263Z Record version: sha256:354a95b93c0399130938508adb6357fd59fc4d1f85b71d4c7f14cb5b661140a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Exchanges Involving Monetary Consideration Subsections provide guidance on the level of monetary consideration in a nonmonetary [exchange](https://asc.understandingaccounting.org/glossary/e/#exchange "An exchange (or exchange transaction) is a reciprocal transfer between two entities that results in one of the entities acquiring assets or services or satisfying liabilities by surrendering other assets or services or incurring other obligations.") that causes the transaction to be considered monetary in its entirety and, therefore, outside the scope of this Subtopic. 1. a [Subparagraph superseded by Accounting Standards Update No. 2017-05](https://asc.understandingaccounting.org/updates/asu-2017-05/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2017-05](https://asc.understandingaccounting.org/updates/asu-2017-05/). 3. c [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ### Exchanges of a Nonfinancial Asset for a Noncontrolling Ownership Interest ##### [845-10-05-12](https://asc.understandingaccounting.org/asc/845/10/#845-10-05-12) Pending content: no Source downloaded (UTC): 2026-09-10T01:59:24.263Z to 2026-09-10T01:59:24.263Z Record version: sha256:fcc3eeceebd70a73b32c13188ab9daf4f9ee9fe1d2a94044db3eb4e5a200e1c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-05](https://asc.understandingaccounting.org/updates/asu-2017-05/).