SIC-31 — Revenue – Barter Transactions Involving Advertising Services
Note: SIC-31 will be superseded by IFRS 15 Revenue from Contracts with Customers as off 1 January 2018
References
- IAS 18 Revenue
History
Date | Development | Comments |
---|---|---|
9 July 2001 | SIC-D31 Revenue – Barter Transactions Involving Advertising Services published | Comment deadline 10 September 2001 |
24 December 2001 | SIC-31 Revenue – Barter Transactions Involving Advertising Services issued | Effective 31 December 2001 |
28 May 2014 | Superseded by IFRS 15 Revenue from Contracts with Customers | Effective for an entity's first annual IFRS financial statements for periods beginning on or after 1 January 2018 |
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.