Under IAS 18,which of These Barter Transactions Would Not Produce

question 1

Multiple Choice

Under IAS 18,which of these barter transactions would not produce revenue?

• A)a farmer exchanges a crop of carrots for seeds
• B)bullion is exchanged for finished silverware
• C)Two gas suppliers swap an identical amount of gas so that both can provide services in both locations
• D)An accountant does the tax return for a restaurant in exchange for free meals

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Definitions:

Shipment Contract

A type of sales contract where the seller is required to send the goods to the buyer, but the risk of loss passes when the goods are handed to the carrier.

Risk of Loss

A legal term referring to the responsibility for damage, destruction, or loss of goods, especially in the context of the sale or transport of those goods.

Hijacked

When something is hijacked, it is taken control of forcefully or unlawfully, often referring to vehicles like planes or trucks, but also can describe situations where control is usurped illegally or unethically.

CISG

The United Nations Convention on Contracts for the International Sale of Goods is a treaty designed to provide a standardized framework for international trade.