This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

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Note: SIC-31 will be superseded by IFRS 15 Revenue from Contracts with Customers as off 1 January 2018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

History

DateDevelopmentComments
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28 May 2014 Superseded by IFRS 15 Revenue from Contracts with Customers Effective for an entity's first annual IFRS financial statements for periods beginning on or after 1 January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.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.