To help you become familiar with the accounting standards, this case is designed to take you to the FASB’s Web site and have you access various publications. Access the FASB’s Web site at www.fasb.org. Click on “Pronouncements & EITF Abstracts.”
In this chapter, we discussed issues relating to fixed assets. For this case, we will use Statement of Financial Accounting Standards No. 153, “Exchanges of Nonmonetary Assets.” Open FASB Statement No. 153.
1. What previous accounting standard does FASB Statement No. 153 amend?
2. In paragraph 2 of the summary, two international accounting standards are identified that relate to this statement. What are those two international accounting standards?
3. Read paragraph 21. When is a nonmonetary exchange considered to have commercial substance?