Financial loophole closed in online advertising practices

NEWS The Urgent Issues Task Force at the Accounting Standards Board (ASB) has banned the practice of companies swapping online advertising space free of charge and then including the ads as revenue, to boost turnover figures. Andrew Lennard, technical officer at the ASB, said: "It's very hard in the rarefied atmosphere of the board to tell what internet companies are up to, but our committee has technical members who are in practice and who advised us that this was an issue that should be addressed quickly." He could not say how widespread the practice was. In future, swapped ads can only be accounted as revenue if there is a 'reasonable assumption' that they could have been sold for cash. The ASB is also working on the problems connected with share options.