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This draft Opinion provides that the accounting for exchanges of nonmonetary assets and for nonreciprocal transfers of assets either to or from the enterprise should be based generally on the fair values of the assets involved. However, the general principle of recording fair values is modified for some transactions in order to accommodate problems of measuring fair values or recognizing revenue before the earning process is complete. Specifically, carrying values of assets should be used to record (1) an exchange or nonreciprocal transfer if fair values are not determin-able; (2) an exchange involving inventory-type items or similar productive assets; and (3) a distribution to owners in connection with a spin-off, other form of reorganization or liquidation, or a rescission of a prior business combination.
Assets (Accounting) -- Standards -- United States
Accounting | Taxation
American Institute of Certified Public Accountants. Accounting Principles Board, "Proposed APB opinion : Accounting for nonmonetary transactions;Accounting for nonmonetary transactions" (1972). Statements of Position. 350.