Revenue — Barter Transactions Involving Advertising Services

SIC 31

ANNOUNCEMENT: IFRS 15 has replaced IAS 11, IAS 18, IFRIC 13, IFRIC 15, IFRIC 18 and SIC-31 for annual period beginning on or after January 1, 2018


The Notes Below are only applicable for annual periods ending on or before Dec 31, 2017.




Revenue — Barter Transactions Involving Advertising Services

SIC 31

The Issue
  • An entity (Seller) may enter into a barter transaction to provide advertising services in exchange for receiving advertising services from its customer (Customer).
  • Advertisements may be displayed on the Internet or poster sites, broadcast on the television or radio, published in magazines or journals, or presented in another medium.
Accounting for barter transactions involving advertising services
  • A Seller that provides advertising services in the course of its ordinary activities recognises revenue from a barter transaction involving advertising when
    • the services exchanged are dissimilar; and
    • the amount of revenue can be measured reliably
  • An exchange of similar advertising services is not a transaction that generates revenue (a debit and credit entry is made to expenses)
Comparison to ASPE
  • No specific guidance provided under ASPE for the above topic

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