Nonreciprocal transfer

A nonreciprocal transfer occurs when an asset is given to a third party with no expectation of payment in exchange. A nonreciprocal transfer is typically accounted for as a contribution. The recipient of this transfer records the received asset at its fair value on the transfer date. The initiator of the transfer records the asset disposition at its fair value, which may result in the recognition of a gain or loss.

Related Courses

Nonprofit Accounting