DEFINITION of 'Nonmonetary Transaction'

Transactions that do not result in a transfer of funds between accounts. Nonmonetary transactions can be something as simple as a change of address or can refer to more complex transactions in the financial sector. For example, a $0 deposit to initiate an automated clearing house transaction (e.g., direct deposit or auto-withdrawal) would be considered a nonmonetary transaction.

The even exchange of assets (e.g., transferring property or inventory) is a nonmonetary transaction. In cases of property exchange, the fair values of the underlying assets need to be determined, if possible.

BREAKING DOWN 'Nonmonetary Transaction'

Nonmonetary transactions can be either reciprocal or nonreciprocal. Reciprocal (two-way) nonmonetary transactions involve two or more parties exchanging nonmonetary goods, services or assets. Nonreciprocal (one-way) nonmonetary transactions involve the transfer of goods, services or assets from one party to another, such as a business making an in-kind donation of employee volunteer time or physical items to another organization.

RELATED TERMS
  1. Nonmonetary Assets

    Assets in which the right to receive a fixed or determinable ...
  2. Boot

    Cash or other property added to an exchange or other transaction ...
  3. Transaction Deposit

    A banking deposit that has immediate and full liquidity, with ...
  4. Transaction Identifier

    A unique identifier assigned by a business to each transaction ...
  5. Constant Dollar Accounting

    A method of accounting that measures financial statements in ...
  6. Transaction Date

    The date upon which a security or other financial instrument ...
Related Articles
  1. Investing

    Understanding Related-Party Transactions

    In business, a related-party transaction refers to a transaction where parties on both sides have a common interest or relationship.
  2. Investing

    What Are Transaction Costs?

    Transaction costs are expenses incurred from buying or selling securities.
  3. Investing

    Arm's Length Transaction

    An arm’s length transaction describes business deals in which the buyer and seller act independently and with no interest in the other’s benefit.
  4. Taxes

    What IRS Form 8949 Is For

    Selling a painting or that lake property? Disposing of your fossil fuel stocks? You need to know about this IRS form.
  5. Trading

    Principal Trading and Agency Trading

    Ever wonder what happens behind the scenes when you buy or sell a stock? Read on and find out!
  6. Investing

    Best Ways to Send Large Sums of Money Abroad

    Understand why it may be difficult to send large sums of money internationally. Learn about the top five ways to send large sums of money abroad.
  7. Small Business

    Bitcoin Transactions Vs. Credit Card Transactions

    We provide an overview of the differences between bitcoin and credit card transactions, and the advantages of using one over the other.
  8. Taxes

    Trade Properties To Keep The Taxman At Bay

    Like-kind exchanges can mean a much lower tax bill on real estate for savvy investors.
  9. Investing

    What is the Secondary Market?

    The secondary market is where investors purchase securities or assets from other investors, rather than from the issuing companies themselves.
  10. Financial Advisor

    How Brokers Are Compensated for Selling Bonds

    Find out how brokers are paid for selling bonds and how the transaction costs are passed on to the investor through a markup or commission.
RELATED FAQS
  1. How are arm's-length transactions determined by law?

    Determine if transactions are conducted at arm's length by checking if the parties to a contract are independent and transact ... Read Answer >>
  2. What are the differences for barter transactions recognition between IFRS and USGAAP?

    Understand the key differences between how the IFRS and the U.S. GAAP accounting systems recognize and record barter transactions ... Read Answer >>
  3. Are arm's length transactions always better than transactions not at arm's length?

    Transactions not at arm's length have real tax and other consequences for individuals and businesses, but they are not necessarily ... Read Answer >>
  4. Given a good bookkeeping system, would financial accounting be necessary?

    Bookkeeping and financial accounting may seem like they are new creations, but variations have been around for millennia. ... Read Answer >>
  5. Transactions are exempt from registration where …

    Transactions are exempt from registration where … a. A sale, or offer of sale is made to ALL clients of a brokerage ... Read Answer >>
  6. Are there any pure arm's-length markets?

    Learn about arm's length markets and transactions. Explore situations when different market participants may not be at arm's ... Read Answer >>
Hot Definitions
  1. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  2. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  3. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  4. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  5. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  6. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
Trading Center