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Accounting

  Accounting   |   Terms
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  • January 20, 2022
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Non-Reciprocal Transfer with Owners

A non-reciprocal transfer that an entity conducts with its owners (equity holders). It is a transfer of assets or services in one direction (a one-way transfer): from an entity to its owners (whether or not in exchange for their ownership interests) or the other way around (in an opposite direction). An example of non-reciprocal transfer to owners is re-acquisition by an entity of its outstanding stock.

Other examples of non-reciprocal transfers with owners include such as: dividends-in-kind, split-ups, spin-offs and non-monetary assets exchanged for common stock.


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