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SEC Suggests Review Of Internet Accounting Issues, Including Ad Barter Deals

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The staff of the Securities and Exchange Commission has proposed to a rule-making panel of the Financial Accounting Standards Board that it or another standard-setter address 20 varied accounting issues that arise from the use of the Internet. Near the top of the list is the topic of advertising barter transactions, whereby Internet firms trade rights to place advertisements on each others' sites on the World Wide Web. Accounting for ad barter transactions is included in a description by the SEC staff of issues grouped under the rubric of "gross v. net." The overarching question is whether to present grossed-up revenues and cost of sales, or merely to report the net as revenues. (Securities Regulation & Law Report, 10/29/99, p. 1440)
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