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Hw Assignemnt 1 - Intermediate Accounting II HW Assignment...

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Intermediate Accounting II HW Assignment 1 1. a) Yes, this trade of pitchers is considered a nonmonetary exchange for financial reporting purposes because the trade of player contracts by professional sports organizations qualify as an exchange of productive assets, which is considered a nonmonetary exchange. The full standard can be seen below, as described in the codification. FASB-ASC-845-10-5-6 c Many nonmonetary transactions are exchanges of nonmonetary assets or services with another entity. Examples include the following: a. Exchange of productive assets —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. Trade of player contracts by professional sports organizations 1. b) Though High Tower is making a small cash payment, as this payment only represents 5% of the overall trade value, which is less than 25% of the trade value, this exchange would still be considered nonmonetary. The full description of these transactions can be
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