SIC-31 — Revenue – Barter Transactions Involving Advertising Services

References

History

  • 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.

Correction list for hyphenation

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