For whatever reason the becker lecture on this topic was difficult for me to "graspp." This lecture made the topic seem easy and now I am hoping for a simulation problem on NMTs for my exam monday!
@AccountingLectures Жыл бұрын
Hi Jack, most welcome. Please check my FAR Becker supplemental course: farhatlectures.com/cpa_exams/far/far-gleim-2/becker-supplemental-course/
@miguelbernardino53812 жыл бұрын
Farhat in my Becker study material, they tell me that when cash/boot is paid in a nonmonetary transaction that lacks commercial substance, you still need to see if it is less than or greater than 25%. In your lecture, you state that no matter what, if cash is paid, we defer the gain. So I am confused as to which method to use. In your example, Becker tells me we would record all of the gain. Heres the math: Cash of $420,000 ----------------------------------------------------- = 77% Cash 420k + FV of old Asset 120k Because this is 25%, we record all of the gain New Equipment. 540,000 Old Equipment 500,000 A/D 400,000 Cash 420,000 Gain 20,000 So you see, it makes a huge difference. Becker is telling me one thing, but your lecture is telling me another. Please let me know what you think
@nivasgowda61052 жыл бұрын
In Wiley notes, Everything matches with Farhat's Lecture.
@XMegaJuni2 жыл бұрын
You are correct, if the ratio is greater than 25% either cash received or paid, then you treat the transaction as monetary transaction and would recognize the assets exchanged at fair value. -- How did you do on FAR?
@jamesjohnson2382 жыл бұрын
Was wondering the exact same thing. Becker says if boot paid is less than 25% then we defer it like farhat mentions. However, if boot paid is more than 25% we treat it as a monetary exchange and record the gain. Would also like clarification because this is conflicting information.
@claire1388 Жыл бұрын
I'm confused with same question. I use Becker as well. Who can give us the correct answer? thanks in advance.
@sardaunaabdul-sobur6435 Жыл бұрын
Thanks sir..so easy to understand. Bless you sir
@AccountingLectures Жыл бұрын
Thank you and please visit the website for more farhatlectures.com/
@saulalf1191 Жыл бұрын
Thanks for the lecture. Does this apply for IAS 16? (IFRS)
@abdallahshehada7962 жыл бұрын
شرح رائع جدا جدا بوركت جهودك وجزاك الله خيرا
@AccountingLectures2 жыл бұрын
Please connect with me: linktr.ee/farhatlectures
@miglenapetrovadamyanova82892 жыл бұрын
I agree with Miguel and now I am confused about which methodology I should memorize. Professor Farhat, would you advise and thank you for the great lectures!!!
@AccountingLectures2 жыл бұрын
Try a third source and judge yourself.
@XMegaJuni2 жыл бұрын
If you want to reassure yourself of what the correct methodology is then I would suggest looking at 845-10-25-6 in the codification. If the monetary consideration (boot) is significant then you treat it as an exchange with commercial substance. So you would recognize ALL of the gain.
@barah1124 Жыл бұрын
Company alpha exchange is equipment fair value old equipment is 19000 book value 14000 alpha also paid 4000 cash
@barah1124 Жыл бұрын
Record entry for exchange assuming the exchange has commercial substanc?
@bumbee-li6hb Жыл бұрын
I am studying the topic Non monetary exchange from Keiso's Intermediate accounting IFRS edition. I cleared my basic from this video. From that book solved some math and it didn't recognise the gain and loss at all and deferred both the gain and loss when the transaction lacks commercial substance. Is it okay to not recognise the gain?
@brostom77 Жыл бұрын
2:23
@TheAwesomeWizardDude2 жыл бұрын
As others have pointed out, the information in this lecture does not accurately reflect how these nonmonetary exchanges are tested on the CPA exam (i.e., the 25% rule for cash, etc.) Still an excellent lecture, but viewers be advised: do not use this material if you are studying for FAR. It will only jumble what's already in your head.