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Gains on Exchanges of Assets When the Exchange Has Commercial

question 201

True/False

Gains on exchanges of assets when the exchange has commercial substance are recognized under both IFRS and U.S. GAAP.


Definitions:

Basic Duty

An essential or fundamental obligation required by law, contract, or ethical considerations.

Usage of Trade

Established customs and practices in a particular industry or market that are widely accepted and that parties to a contract are presumed to follow.

Customs

The official department that oversees the importation and exportation of goods in and out of a country, implementing national regulations and duties.

Practices

refers to habitual actions or procedures followed by individuals or organizations in a particular field or profession.

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