Revenue – ifrs 15 handbook

Barter transactions involving advertising services
The standard does not contain any specific guidance on the accounting for 
barter transactions involving advertising services; therefore, the general 
principles for measuring consideration apply
.

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3 Step 3 – Determine the transaction price | 81
3.4 Consideration payable to a customer
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3.4
Consideration payable to a customer
IFRS 15.70
Consideration payable to a customer includes cash amounts that an entity pays or 
expects to pay to the customer or to other parties that purchase the entity’s goods 
or services from the customer. Consideration payable to a customer also includes 
credits or other items – e.g. a coupon or voucher – that can be applied by the 
customer against the amount owed to the entity or to other parties that purchase 
the entity’s goods or services from the customer.
An entity evaluates the consideration payable to a customer to determine whether 
the amount represents a reduction of the transaction price, a payment for distinct 
goods or services or a combination of the two.
IFRS 15.71
If the entity cannot reasonably estimate the fair value of the good or service 
received from the customer, then it accounts for all of the consideration payable to 
the customer as a reduction in the transaction price.
IFRS 15.70–72
Consideration
payable
is accounted for
as a purchase
from suppliers
Yes
No
Does the consideration payable
exceed the fair value of the distinct
good or service?
Consideration payable
is accounted for as
a reduction in the
transaction price and
recognised at the later
of when:
the entity recognises
revenue for the
transfer of the related
goods or services
the entity pays or
promises to pay the
consideration (which
might also be implied)
Can the entity reasonably
estimate the fair value of the good
or service received?
Yes
No
Excess of consideration
payable is accounted for
as a reduction in the
transaction price
Remainder is accounted
for as a purchase from
suppliers