![]() But the price includes all shorts of overheads, like the access costs I mentioned, or marketing costs (that can be seen as information costs or as the price to pay for competition and the innovation and product variety that brings along), etc. Think computers: only the materials themselves and the technology embodied in them provide utility to you (plus maybe the brand). They don't provide any direct utility to him -they are obligatory costs that end up increasing the price, so that the consumer is able to acquire the good and enjoy the services/utility of the good itself. If you start to think about it, all packaging and transportation costs from the supplier to the shop are also "access costs" from the point of view of the consumer. I hit upon this concept in a little side-research I did in hedonic-price analysis. Personally I prefer to think of it as an access cost. ![]() You could certainly treat it as a "transaction cost", by suitably define the scope of the concept. In the field of Industrial Organization, the good's distance from the consumer has been often treated as an aspect of product differentiation. The consensus among economists appears to be that most of such travel is not considered by the consumers as utility-enhancing per se (although trends like "family-shopping on Saturday" may say a different story), and so it should be interpreted in a different way. If the consideration given is nonfinancial assets or in substance nonfinancial assets within the scope of Subtopic 610-20, the assets acquired shall be treated as noncash consideration and any gain or loss shall be recognized in accordance with Subtopic 610-20.Since it was mentioned in an another answer let's clear this first: whether the transportation (and its time and monetary costs) should be associated with the intended consumption of the good you are going to purchase, or it can be considered as consumption on its own, depends on your subjective view of it: do you derive any form of pleasure by the trip itself? If yes, at least part of it should be considered consumption per se. For transactions involving nonmonetary consideration within the scope of Topic 845, an acquirer must first determine if any of the conditions in paragraph 845-10-30-3 apply. ![]() However, if the consideration given is not in the form of cash (that is, in the form of noncash assets, liabilities incurred, or equity interests issued) and no other generally accepted accounting principles (GAAP) apply (for example, Topic 845 on nonmonetary transactions or Subtopic 610-20), measurement is based on either the cost which shall be measured based on the fair value of the consideration given or the fair value of the assets (or net assets) acquired, whichever is more clearly evident and, thus, more reliably measurable. Transfers and servicing of financial assetsĪsset acquisitions in which the consideration given is cash are measured by the amount of cash paid, which generally includes the transaction costs of the asset acquisition. Revenue from contracts with customers (ASC 606) Loans and investments (post ASU 2016-13 and ASC 326) Investments in debt and equity securities (pre ASU 2016-13) Insurance contracts for insurance entities (pre ASU 2018-12) Insurance contracts for insurance entities (post ASU 2018-12) IFRS and US GAAP: Similarities and differences ![]() Business combinations and noncontrolling interestsĮquity method investments and joint ventures
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