SIC-31 — Revenue – Barter Transactions Involving Advertising Services
- IAS 18 Revenue
- SIC D31 was issued July 2001
- Final SIC-31 was approved by the IASB in December 2001
- Effective date: 31 December 2001
Summary of SIC-31
Under IAS 18, revenue cannot be recognised if the amount of revenue is not reliably measurable. SIC-31 deals with the circumstances in which a seller can reliably measure revenue at the fair value of advertising services received or provided in a barter transaction.
Under SIC-31, revenue from a barter transaction involving advertising cannot be measured reliably at the fair value of advertising services received. However, a seller can reliably measure revenue at the fair value of the advertising services it provides in a barter transaction by reference only to non-barter transactions that:
- involve advertising similar to the advertising in the barter transaction
- occur frequently
- represent a predominant number of transactions and amount when compared to all transactions to provide advertising that is similar to the advertising in the barter transaction
- involve cash and/or another form of consideration (such as marketable securities, non-monetary assets, and other services) that has a reliably measurable fair value
- do not involve the same counterparty as in the barter transaction.