5250 Voluntary Non-Exchange Transactions

This object class is for the provider to record the non-exchange expenses when all applicable eligibility requirements have been met. In a voluntary non-exchange transaction, an agency gives or receives value (e.g., revenue vehicle) without directly receiving or giving equal value (e.g., cash) in return. This is different from an exchange transaction, in which each party receives and gives up essentially equal values. Voluntary non-exchange transactions result from legislative or contractual agreements, other than exchanges, entered into willingly by the parties to the agreement.

An example of a voluntary non-exchange transaction is when one transit agency builds capital assets, such as railways and train stations, and transfers the assets to another transit agency that operates them. Other examples of voluntary non-exchange transactions include certain grants and private donations.

The provider in a non-exchange transaction recognizes a decrease in assets when all applicable eligibility requirements of the non- exchange transaction have been met. The provider reports resources transmitted before eligibility requirements are met as Assets (e.g., an advance).

Receiving agencies can find guidance for reporting the non-exchange transaction under the Non-Added Revenue: Voluntary Non- Exchange Transaction (4620).