A television producer or distributor (the "barter " syndicator) licenses television programming to a local television station in return for a fee and a specified amount of local advertising time. If the sale were for only a fee, it would qualify for revenue recognition when all the criteria of paragraph 6 of Statement 53 are satisfied. In the part-fee, part-advertising-time scenario, the syndicator contracts to sell the advertising time on local stations to a third-party national advertiser. The issue is when the syndicator should recognize revenue for the advertising time. EITF DISCUSSION The Task Force reached a consensus that the "barter " revenue would be recognized when the criteria of Statement 53 are met and noncancelable contracts are signed with both the station and the advertiser. [Note: See STATUS section.] If a noncancelable contract does not exist, revenue would be recognized when the criteria of Statement 53 are met and the advertising is aired. Task Force members acknowledged that alternative methods exist but rejected them due to their complexity and the desirability of having only one method in practice. Copyright © 1987, Financial Accounting Standards Board Not for redistributio
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