The Use of Program NAMEX in Teaching the Accounting for Nonmonetary Asset Exchanges Charles W. Caldwell

Abstract

Accounting for the exchange of nonmonetary assets, as prescribed by APB Opinion No. 29, can be quite confusing to accounting students. The number of possible combinations of situations and their treatments can be seemingly endless for the student. These situations include exchanges where the fair market value of the assets may or may not be known, gains or losses may exist, cash boot may be given or received, and the assets may be similar or dissimilar. Without a systematic procedure of analyzing a nonmonetary asset exchange, students frequently resort to memorization of example problems, and they become so entangled with details that they cannot handle a situation that is slightly different from their memorized example prob1em.