a gain or loss on the exchange of similar assets will be recorded if the transaction has,

In order to understand accounting transactions, it is important to know the difference between a gain and loss. A gain or loss on the exchange of similar assets will be recorded if the transaction has occurred at fair value. This means that when one asset is exchanged for another, there is no need to record any income or expense because both assets are recognized as having equal values. If the assets are not of equal value, then one amount is recognized as a gain and another an expense. In order to understand accounting transactions, it is important to know the difference between a gain or loss. A gain or loss on the exchange of similar assets will be recorded if the transaction has occurred at fair value. This means that when one asset is exchanged for another, there is no need to record any income or expense because both assets are recognized as having equal values. If they are not of equal value, then one amount will be recognised as a gain and another an expenditure (expense). Eg: On March 31st we sold our house in Edmonton for $300k cash and bought three houses in Toronto for $