nonreciprocal transfer

Broad Transactions2

1. 818-10Overall818 Environmental Credits and Environmental Credit Obligations

   ASC 818-10 is the Overall subtopic of the new Environmental Credits and Environmental Credit Obligations Topic (created by ASU 2026-02), which sets the accounting and reporting requirements for entities that acquire, internally generate, or receive environmental credits and for entities subject to regulatory compliance programs (e.g., cap-and-trade, renewable portfolio or fuel standards) that create environmental credit obligations. It applies to all environmental credits and environmental credit obligations, and items within its scope are excluded from derivatives accounting under Topic 815. The objective is to give investors useful information about the amount, timing, and uncertainty of cash flows from these transactions.

2. 845-10Overall845 Nonmonetary Transactions

   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.