Identify the four types of nonexchange transactions and discuss the rules for recognition of revenues and...

Identify the four types of nonexchange transactions and discuss the rules for recognition of revenues and expenses/expenditures for each type of transaction.

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GASBS 33 identifies four classes of nonexchange transactions: derived tax revenues; imposed nonexchange revenues; government‐mandated nonexchange transactions; and voluntary nonexchange transactions. ... State and local governments typically receive a variety of grants and other financial assistance.

Derived tax revenues, which result from assessments imposed on exchange transactions (for example, income taxes, sales taxes, and other assessments on earnings or consumption)
Imposed nonexchange revenues, which result from assessments imposed on nongovernmental entities, including individuals, other than assessments on exchange transactions (for example, property taxes and fines)
Government-mandated nonexchange transactions, which occur when a government at one level provides resources to a government at another level and requires the recipient to use the resources for a specific purpose (for example, federal programs that state or local governments are mandated to perform)
Voluntary nonexchange transactions, which result from legislative or contractual agreements, other than exchanges, entered into willingly by the parties to the agreement (for example, certain grants and private donations).

ekkarill92 answered 10 months ago

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