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  • The Financial Encyclopedia
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Accounting

  Accounting   |   Terms
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  • January 20, 2022
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Non-Reciprocal Transfer to Nonowners

A non-reciprocal transfer that an entity carries out to nononwers (external parties/ third-party or any party other than owners). A non-reciprocal transfer to nonowners is typically a transfer of non-monetary assets for which no assets/ economic resources are received or relinquished in exchange. An example is donation or contributions extended to a third party, i.e., an asset (economic resource) is given to a third party with no expectation of payment in exchange. This usually involves a payment to a nonprofit entity.


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