What is insured asset exchange?

ASSURED ASSET EXCHANGE: Assured Asset Exchange is a secure intermediary servicing precious metals and fine jewelry manufacturers, and distributors across the world. Security and authenticity are always the top priority of Assured Asset Exchange. WHY aabids.com?

What happens when a company exchanges a fixed asset?

When a company exchanges a fixed asset with another and the transaction has “commercial substance,” the company records the asset acquired at its fair value (or, if that is not readily available, the fair value of assets given up). In most cases, fixed assets are acquired through exchange of monetary assets, such as cash.

What happens if you exchange a similar asset?

However, if the future cash flows are likely to be significantly different, then the exchange of similar assets has commercial substance. For example, Log, Inc. exchanges two dump trucks that it had owned for two years for a concrete mixer. The total fair value of the dump trucks is $200,000, and the fair value of the concrete mixer is $220,000.

What happens if a company exchanges equipment?

In business, equipment is often exchanged (e.g., an old copy machine for a new one). Sometimes land is exchanged. Exchanges can be motivated by tax rules because neither company may be required to recognize a taxable event on the exchange. The result could be quite different if the asset was sold for cash.