Question

Under IFRS, revenue from barter transactions should be measured based on the fair value of revenue from:

A. similar barter transactions with unrelated parties.
B. similar non-barter transactions with related parties.
C. similar non-barter transactions with unrelated parties.

Answer 1

Under IFRS, revenue from barter transactions should be measured based on the fair value of revenue from similar non-barter transactions with unrelated parties.

Step-by-step explanation:

Under IFRS, revenue from barter transactions should be measured based on the fair value of revenue from similar non-barter transactions with unrelated parties.

This means that when determining the value of revenue from barter transactions, companies should consider the fair value of revenue generated from similar transactions where no barter is involved, and the parties involved are not related.

For example, if a company exchanges goods or services with another company in a barter transaction, they should calculate the fair value of what they would have received if they had sold those goods or services to an unrelated party in a non-barter transaction.

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