Barter takes place when a person or company offers a good or service and receives a good or service in return instead of receiving cash or other money instrument. Accounts still need to track these exchanges, but cannot rely on standard purchase receipts to record the trade. Although accounting standards in the United States differ from those in the international world, trading transactions are generally accounted for using different methods that result in an estimate of fair value. Hello Silvia, do you mean that in case of exchange, it is necessary to determine the fair value of the two products as equal? The Internal Revenue Service has decided that businesses and individuals must consider the fair market value of all goods and services received exchanged for all goods and services provided – in short, you must keep in mind the value of the exchanges. Hello Silvia What happens if the correct accounting treatment for the situation in which third parties ask us to move the emission pylons and they bear the cost of the new tower? We get the new tower for free and have to abandon the old tower (dismantled and graceful). Is it covered by IAS 16 (Swapping or Exchange of Asset) or IFRS 15? The accounting equation of assets = liabilities + equity means that the entity`s balance sheet total is always equal to the total liabilities plus the company`s equity. This is valid at all times and applies to every transaction. Are you a dentist and work in exchange for IT services? You may be a physiotherapist who exchanges services with someone who does your social networks. These are great examples of barter. However, the main difference between gaap and SIC-31 is that GAAP has the ability to account for circumstances in which fair value cannot be successfully estimated. In accordance with the 1999 judgment of the Task Force on the outcomes of an exchange transaction, if no estimate of historical data is available, revenue from an exchange transaction is recognised at the book value of the abandoned asset, which is most likely zero.

According to the US-GAAP system, the exchange transaction is defined as two parties that exchange goods or services without payment in cash. Like IFRS, the vast majority of these exchanges are advertising services. U.S. GAAP is also looking for a fair market value estimate, based on previous non-exchange transactions, to record an exchange sale. In other words, historical revenues generated by similar transactions of goods and services can be used to determine fair value. The terms “exchange”, “exchange exchange”, “trading exchange” and “counter-trading exchange” are used to describe the organization that manages the barter. Different terms are used to refer to the medium of exchange, such as units, credits, trading instruments or exchange dollars….

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