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Some principles of the revenue standard apply to the recognition of a gain or loss on the transfer of certain nonfinancial assets and in substance nonfinancial assets that are not an output of a reporting entity's ordinary activities (such as the sale or transfer of property, plant, and equipment). Guidance on the sale or transfer of nonfinancial assets or in substance nonfinancial assets to counterparties other than customers is included in ASC 610-20. ASC 610-20 refers to ASC 606 for the principles of recognition and measurement.
Although a gain or loss on this type of sale generally does not meet the definition of revenue (and, therefore, would not be presented as revenue), a reporting entity should apply the guidance in the revenue standard to determine whether the parties are committed to perform under the contract and therefore whether a contract exists (refer to RR 2.6). Reporting entities should also apply the guidance in the revenue standard related to the transfer of control (refer to RR 6) and measurement of the transaction price (refer to RR 4), including the constraint on variable consideration, to evaluate the timing and amount of the gain or loss recognized.
Refer to RR 2.4 and PPE 6.2.2 for further guidance on determining whether the arrangement is with a customer. For further discussion of ASC 610-20, refer to PPE 6.

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