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SIC D31

References

History

  • SIC D31 Issued July 2001.
  • Final SIC 31 Revenue – Barter Transactions Involving Advertising Services was approved by the IASB in December 2001. The text below does not reflect the final approved version.

Summary of SIC D31

D31 addresses how revenue from a barter transaction involving advertising should be measured, and the circumstances when the fair value of advertising services received or provided in a barter transaction be reliably measured. The SIC agreed that:

  • an enterprise providing advertising should measure revenue from a barter transaction based on the fair value of the advertising services it receives from its customer unless it is impracticable to measure reliably, in which case the enterprise should use the fair value of the advertising services it provides to the customer. If the fair value of the advertising services of both enterprises is not reliably measurable, the Seller should recognise revenue only to the extent of the carrying amount of assets given up.
  • the fair value of advertising services received or provided in a barter transaction can be reliably measured only by reference to non-barter transactions that:
    • involve advertising similar to the advertising in the barter transaction;
    • occur frequently;
    • are expected to continue occurring after the barter transaction;
    • represent a predominant source of revenue from advertising similar to the advertising in the barter transaction;
    • involve cash and/or another form of consideration (e.g., 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.

Issued for public comment on 9 July 2001. Comment deadline 10 September.

Click for Press Release (PDF 44k).

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