Nonmonetary Exchanges

Nonmonetary exchanges occur when businesses trade long-term assets—such as equipment, vehicles, land, or intangible rights—without cash being the primary form of consideration. Although these transactions may seem straightforward, the accounting rules behind them require careful evaluation of fair value, gains and losses, and commercial substance. This guide walks you step-by-step through how to recognize, measure, and record nonmonetary exchanges so you can apply the standards with confidence and accuracy.

Access the Google spreadsheet below and watch the accompanying video to see an in-depth review of how these journal entries can be tackled.

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Click here to access the
Nonmonetary Exchanges Spreadsheet
and follow along!

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It looks like you’ve mastered this lesson. Good work!