What is Nonexchange transactions (governments)?
In short
In nonexchange transactions, a government gives or receives value without directly giving or receiving equal value. Types include derived tax revenues, imposed revenues, government-mandated and voluntary nonexchange transactions.
Key takeaways
- Derived tax revenues, such as sales and income taxes, are recognized when the underlying transaction occurs.
- Imposed revenues, such as property taxes, are recognized in the period they are levied for.
- Grants are recognized when all eligibility requirements, including any time requirement, are met.
Where it's tested
FAR: Governmental Accounting — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Governmental funds use which measurement focus and basis of accounting?