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Business and Financial Policies and Procedures

Report a Non-Monetary Exchange

Policy Statement

The University of Illinois System complies with generally accepted accounting principles (GAAP) as established by the Governmental Accounting Standards Board (GASB) for state and local government entities. These principles require the system to record any type of financial or non-financial exchange transaction in its financial statements to accurately represent all financial or non-financial business activity the system partakes in.

Thus, even though no cash is changing hands in these non-monetary exchanges, units must report the fair market value of these revenues and expenses to University Accounting and Financial Reporting (UAFR).

Non-monetary exchanges may have other financial ramifications, such as tax reporting consequences. If you have questions, contact UAFR at


To report a non-monetary exchange:

  1. Consult Identify a Non-Monetary Exchange to confirm the transaction qualifies as a non-monetary exchange.
  2. Complete and submit a Report of Non-Monetary Exchange Transactions form within the accounting period in which the transaction occurred.
  3. UAFR analyzes the information to determine whether the activity should be recorded for financial statement purposes. If so, UAFR works with the unit to ensure that it is properly recorded.

Non-monetary exchanges are recorded at the estimated fair market value of the goods and/or services provided by the system. If that cannot be determined, the exchange is recorded at the estimated fair market value of the goods and/or services received by the system.

Forms Used in this Procedure

Report of Non-Monetary Exchanges

Related Policies and Procedures

Identify a Non-Monetary Exchange

Additional Resources

Non-Monetary Exchange FAQs
Methods of Valuing Non-Monetary Exchanges

Last Updated: June 2, 2014 | Approved: Senior Associate Vice President for Business and Finance | Effective: November 2009

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