Abstract The article focuses on some changes made in the required accounting procedures for some nonmonetary transactions in APB Opinion No. 29, entitled "Accounting for Nonmonetary Transactions," which was released in May 1973. For example, the opinion requires that nonreciprocal nonmonetary transactions, such as property dividends, be based upon fair values. Opinion No. 29 also affects reciprocal nonmonetary exchanges significantly. However, some parts of the opinion dealing with nonmonetary exchanges are quite difficult to interpret and even the new editions of intermediate accounting texts, which claim to include all thirty-one opinions of the Accounting Principles Board fail to present an adequate explanation of the effect of this opinion on accounting for reciprocal exchanges of nonmonetary assets between entities. In addition, there seems to be a common misconception that Opinion No. 29 prescribes accounting procedures for nonmonetary exchanges identical to those required for income tax reporting. Therefore, the purpose of this article is to summarize and explain those parts of the opinion, which deal with reciprocal exchanges of nonmonetary assets.
Capettini et al. (Thu,) studied this question.