1. In the accounting treatment of non-monetary asset exchanges, when determining the measurement basis of the cost of the transferred assets and the recognition principle of profits and losses arising from the exchange, it is necessary to judge whether the exchange has commercial substance, that is, It embodies the principle of "substance over form".

II. Explanation

1. Substance over form requires that enterprises should conduct accounting recognition, measurement and reporting based on the economic substance of transactions or events, not just the legal form of transactions or events. as basis.

2. Non-monetary asset exchange is a non-recurring special transaction. One of the important conditions for its confirmation is that the exchange has commercial substance.

3. One of the conditions for judging whether a non-monetary asset exchange has commercial substance is: the future cash flow of the assets exchanged is significantly different from the assets exchanged in terms of risk, time and amount. The principle of substance over form should be followed when making judgments. Such as the following situations:

(1) The risk and amount of future cash flows are the same but the time is different. For example: a company exchanges a batch of inventory for a piece of equipment. Because the inventory is highly liquid, it can generate cash flow in a short period of time. As a fixed asset, the equipment must bring cash flow to the company in a longer period of time. Assume The future cash flow risk and total amount generated by the two are the same, but because the time span of the cash flows generated by the two is quite different, it can be judged that the future cash flows of the above-mentioned inventory and fixed assets are significantly different, so the exchange of the two assets has commercial substance.

(2) The time and amount of future cash flows are the same, but the risks are different. For example, Company A exchanges an apartment building that is used for business and rental with Company B for an apartment building that is also used for business and rental. The lease period and total rent of each period of the two apartment buildings are the same, but Company A It is rented to a company with good financial and credit status (the company rents the apartment for its single employees to live in). The customers of company B are all single tenants. In comparison, company A has less risk in obtaining rent. Since the enterprise rents to retail investors, the acquisition of rent depends on the financial and credit status of each individual tenant; therefore, if there is a significant difference in the risk or uncertainty of the cash flow inflows between the two apartment buildings, the future cash flows of the two apartment buildings will be significantly different. It can then be judged that the exchange of the two assets has commercial substance.

(3) The risks and times of future cash flows are the same, but the amounts are different. For example, an enterprise exchanges a trademark right for a patented technology of another enterprise. It is expected that the service life of the two intangible assets is the same, and the total cash flow expected to be brought to the enterprise during the service life is the same, but the patent exchanged is The technology is newly developed, and the future cash flow expected to be generated in the initial stage is significantly less than that in the later stage. However, the cash flow generated by the trademark owned by the enterprise is relatively balanced each year, and the amount of cash flow generated by the two in each year is significantly different, then the above trademark rights The future cash flows of the patented technology are significantly different, so the exchange of the two assets has commercial substance.