We provide advertising space for a car company who provide us with the use of a car. We do not provide similar advertising space on a non-barter basis therefore do not know it's fair value. The use of the car is similar to that of an operating lease.
Should we recognise the revenue of advertising space, if so at what value? The only value we can calculate at present is an equivalent operating lease on the car. If we did this should we recognise adverting at an equal amount?
Also, are we correct in assuming we should recognise VAT on both transactions seperately (we are VAT registered). If we are, I assume we would recognise net VAT of £nil.
Any help will be appreciated.