#reading-25-understanding-income-statement #revenue-recognition
However, the amount of revenue reported would be higher, and the amount of revenue can be important to a company’s valuation. In the earlier stages of e-commerce, for example, some equity valuations were based on sales (because many early internet companies reported no net income).
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3.2.3. Barter from Company B, can Company A report revenue at the fair value of the product sold? Because the company’s revenue would be approximately equal to its expense, the net effect of the transaction would have no impact on net income or cash flow. <span>However, the amount of revenue reported would be higher, and the amount of revenue can be important to a company’s valuation. In the earlier stages of e-commerce, for example, some equity valuations were based on sales (because many early internet companies reported no net income).
Under IFRS, revenue from barter transactions must be measured based on the fair value of revenue from similar non-barter transactions with unrelated parties (parties other Summary
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