Answer:
Non-exchange transaction:
In non-exchange transaction a government gives (or receives) value without directly receiving (or giving) equal value in exchange.
Types
- Derived Tax Revenues
- Imposed Non-Exchange Revenues
- Government-Mandated Non-Exchange Transactions
- Voluntary Non-Exchange Transactions
1) Derived Tax Revenues
It result from assessments imposed by governments on exchange transactions. Examples include taxes on personal income, goods or services.
Assets Recognition : Recognize assets from derived tax revenue transactions in the period when the exchange transaction occurs or when the resources are received, whichever occurs first.
Revenue Recognition : Recognize revenues, net of estimated refunds and estimated uncollectable amounts, in the same fiscal year that the assets are recognized, provided that the underlying exchange transaction has occurred
2) Imposed Non-Exchange Revenues
It results from assessments by government on non-governmental entities, including individuals. Examples include: Fines and penalties, etc.
Assets Recognition :Assets from imposed non-exchange revenue transactions are recognized when an enforceable legal claim arises or the assets are received, whichever occurs first.
Revenue Recognition :Recognize revenues in the same period the assets are recognized unless the enabling legislation includes time requirements.
3) Government-Mandated Non-Exchange Transactions
It occurs when a government at one level provides resources to a government at another level and requires that government to use the resources for a specific purpose or purposes established in the provider’s enabling legislation.
Assets Recognition : When all applicable eligibility requirements are met, recipients recognize receivables (or a decrease in liabilities) and providers recognize liabilities (or a decrease in assets).
Revenue Recognition : When all applicable eligibility requirements are met, recipients recognize revenues (net of estimated uncollectible amounts) and providers recognize expenses from government-mandated or voluntary non-exchange transactions.
4) Voluntary Non-Exchange Transactions
It results from legislative or contractual agreement entered into willingly by two or more parties.
