ALL BARTER TRANSACTIONS CONDUCTED THROUGH BIZXCHANGE ARE COMPLIANT WITH THE UNITED STATES GAAP, GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, AND THE SARBANES-OXLEY ACT.
In transactions in which BizXchange takes a position in an unutilized asset and provides trade credits for future fulfillment, the United States Generally Accepted Accounting Principles require that a loss be recorded when it is validated. The sale of an underutilized asset is recorded in the same year that the company receives payment. Direction for corporate barter transactions begins with Accounting Principals Board Opinion Number 29 and is specifically addressed with EITF Abstract 93-11. The Sarbanes-Oxley Act provides general revenue management with SAB 101.
In situations that require BizXchange to make a direct purchase from a company in a specific dollar amount in any form of recognized currency, BizXchange reports this in the United States through a 1099B. BizXchange is recognized as a third-party record keeper of barter transactions by the Tax Equity Fiscal Responsibility Act, or TEFRA. As such, BizXchange has the same reporting requirements as banks, savings and loans, credit unions and stock exchanges. All tax payment are applicable as if the trade credit revenues and purchases were made in cash.
Reporting requirements for trade transaction differ between countries. Depending on the appropriate trade solution and the country in which the transaction occurs, BizXchange will work closely to assure that all transactions meet appropriate legal financial requirements.
We encourage you to consult a CPA or tax professional to determine the best way to record and account for trade business.