• IAS 18, Revenue

History

• SIC D31 was issued July 2001.
• Final SIC 31 was approved by the IASB in December 2001.
• Effective date: 31 December 2001.

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; and
• do not involve the same counterparty as in the barter transaction.