SIC-31
Historical
Revenue–Barter Transactions Involving Advertising Services
Addressed how to measure revenue from barter transactions involving advertising services, permitting reference to the fair value of services provided rather than received. Superseded in 2018.
Historical Reference
SIC-31 was superseded in May 2014 when the IASB issued IFRS 15 Revenue from Contracts with Customers, which replaced IAS 18 and absorbed barter advertising guidance into its general non-cash consideration measurement framework.
This page is retained for historical and comparative reference. Entities should refer to the current standard that superseded this interpretation for authoritative guidance.
Current Standard
IFRS 15 Revenue from Contracts with Customers 1
What SIC-31 Addressed (Historical)
What SIC-31 addressed
SIC-31 addressed how to measure revenue from barter transactions involving advertising services. It considered whether an entity could measure the revenue from receiving advertising services by referencing the fair value of the advertising services it provides in exchange, rather than the fair value of the services it receives.
2
The Conclusion It Reached (Historical)
The conclusion it reached
SIC-31 concluded that an entity may measure the revenue from receiving advertising services by reference to the fair value of the advertising services it provides in exchange, provided that the fair value of the services received is not reliably measurable. This measurement method is permitted because in a barter transaction involving advertising services, the fair value of the advertising services provided is often the most reliable measure of the transaction.
3
Where This Guidance Lives Today
Where this guidance lives today
Superseded byIFRS 15 Revenue from Contracts with Customers
Why withdrawnThe 2014 standard replaced IAS 18 and absorbed barter advertising guidance into its general non-cash consideration measurement framework
Current statusSuperseded
Glossary
Barter transaction
An exchange of goods or services between two entities in a non-monetary transaction, such as an advertising exchange where each party provides advertising space or time to the other.
Non-cash consideration
Consideration received by an entity that is not in the form of cash or cash equivalents, addressed in IFRS 15 by reference to the fair value of the non-cash consideration.
Financial statement key
BS Balance sheet
IS Income statement
SE Statement of changes in equity
OCI Other comprehensive income
SCF Statement of cash flows
History & Development
Jan-2001
In January 2001 the Standing Interpretations Committee issued SIC-31 Revenue–Barter Transactions Involving Advertising Services.
Apr-2001
In April 2001 the International Accounting Standards Board adopted SIC-31.
Minor consequential amendment to SIC-31
May-2014
In May 2014 the Board issued IFRS 15 Revenue from Contracts with Customers which superseded SIC-31.
Superseded by IFRS 15