3. Accounting for non-monetary exchanges (barter exchanges)
In this section, we will focus on exchanges of goods and services. Once again, the main issue in recognizing these transactions lies in their proper valuation.
Generally speaking, these transactions are assessed at the fair value either of the goods or services received or the goods or services supplied—whichever is more accurate.
Please note: If the disparity of values in the exchange or barter is too great, and to avoid managing credits, or other liabilities that might accrue over time, it may be preferable to conduct two separate transactions.
Exchanges can also be treated as separate contributions.