Whether exchanging similar or dissimilar assets,accounting for the transaction is the same.

Question

Quizplus · Accepted Answer

The accounting treatment for asset swaps, whether similar or dissimilar, involves recognizing any gains or losses on the exchange and adjusting the valuation of the assets swapped accordingly. The basic principle of accounting parity is applied to ensure that the exchange is recorded at fair value, which is the same whether the assets exchanged are similar or dissimilar.

Whether Exchanging Similar or Dissimilar Assets,accounting for the Transaction Is