The weekly newsletter for everyone interested in barter--the world's most versatile business tool!
October 26, 1999
In this week's report. . .
Atwood Richards Executes Strategic
Atwood Richards one of the oldest and largest corporate barter companies in the world, has completed negotiations and signed a strategic alliance agreement to develop an internet barter system.
They chose ProNetLink.com after an exhaustive search, and found ProNet's full array of international services to best serve their global needs.
ProNet and Atwood Richards will work together to develop front-end systems that will allow ProNet members to take advantage of the process of international barter.
As an added aspect of the alliance, Atwood Richards will also use their international offices in 28 countries to market and sell ProNet memberships, advertising, and services.
Moreton Binn, Chairman of Atwood Richards, explained, "Atwood needed a presence on the internet. We did our due diligence on firms that had a global trade presence and a solid position on the internet.
"We felt that ProNet's Global Trade Internetwork was technically far superior to the competition-especially with its global reach and market penetration. We were also impressed with their connections in Washington, DC, and that they were the first dot.com company to be invited on a presidential sanctioned trade mission."
Barter Is Critical To International Trade
"The importance of barter is critical to international trade," declared J.P. Collardeau, ProNetLink President and CEO. "The inclusion of online barter capabilities in the Global Trade Internetwork has long been in our plans.
"I am pleased to have Atwood Richards, with their depth of experience and market penetration, as ProNet's partner. The addition of Atwood Richards, a barter company established in 1958 that has many Fortune 500 clients, will offer an exciting new dimension for our members."
The Global Trade Internetwork Portal
The Global Trade Internetwork is a comprehensive business-to-business e-commerce portal designed specifically for the international trade community.
In addition to locating potential markets and trade partners, ProNet members may conduct business functions online, participate in live trade event netcasts, communicate in real-time with trading partners, and receive critical information and resources necessary for the continued growth of their businesses.
Headquartered in New York City, ProNet maintains sales offices in Israel, Russia, and India. It is a publicly traded company on the OTCBB: PNLK.
How To Book A Corporate Barter Transaction
Wickes, Inc., a leading supplier of building materials in the U.S. which operates building centers in 24 states, recently reported that they are restating a transaction which was established in the 3rd quarter of 1998. Annual sales approach $1 billion.
Management indicated they are following generally accepted accounting principles in every aspect of their business, including the accounting treatment for an inventory barter transaction.
Below is a synopsis of the statement by the company on how the barter transaction will be recorded on their books:
"Accounting for the inventory barter transaction was established in the third quarter of 1998 when inventories with an original purchase price of $1.6 million were exchanged for $1.6 million in trade credits.
"A $400,000 inventory markdown reserve was netted against the transaction and the trade credits were originally established as a $1.2 million prepaid expense.
"The company now believes the barter credits should have been recorded at a net book value of $350,000, which will result in recording the barter transaction benefit as the trade credits are utilized."
Editor's Note: The above accounting treatment of corporate barter trade credits is in line with the Financial Accounting Standards Board EITF 93-11 ruling, "Accounting for Trade Credit Transactions." A full report on the FASB 93-11 ruling is found in the BarterNews FastStart Corporate Barter Program.
OnePlace.com Barters Continuous Streaming
Salem Communications is offering local Christian radio stations the opportunity to broadcast to a national audience on the internet by agreeing to advertise OnePlace.com, which allows listeners to interact with a radio program and e-commerce online.
Salem Communications, headquartered in Camarillo (CA), is the eighth largest radio broadcasting company in the country, with 52 radio stations in 27 geographically diverse markets. They also own Salem Radio Network which offers talk programming, news, and music to more than 1,350 radio affiliates.
GetThere.com Barters Millions of Stock Options With Airlines
GetThere.com, formerly Internet Travel Network, is about to become a publicly traded corporation...and already has traded millions of options on its soon-to-be-released stock with its big new airlines partners.
Amidst pages of financial information, the Securities and Exchange Commission filing noted options for 7.7 million shares of stock granted to partners including Air Canada, America West Airlines and Northwest Airlines.
October 19th: Adauction's newly created ad space, "billboards by the bay," those 40' x 80' rectangular sails hoisted on a barge in the San Francisco Bay, has given another landmark in the area an idea.
Golden Gate Bridge directors are currently considering an offer from CarOrder.com, which wants to hang an ad banner over the bridge's toll plaza. In return, the online car dealer is willing to pay all tolls for one day each month, plus an extra $400,000 to the bridge's bank account.
Coming soon. . .
We welcome your comments, questions, and observations.
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