Barter transactions in which one company trades goods or services to another company for other goods and services are becoming more common. Broadcasters, for example, often barter advertising air time for goods or services. In such good-faith transactions, the broadcaster will credit revenue for the fair value of on-air advertising while debiting accounts in equal amounts for the nonmonetary goods and services it receives. Dynergy, an energy company, and another company agreed to buy and sell power to each other for the same price, terms, and volume. This resulted in no profit for Dynergy but increased its sales for the year, which perhaps helped it meet its sales goals and management's annual incentive bonus plans.8 Do you think barter transactions that result in little or no profit for either company are ethical?
Are they ethical in certain situations but not in others?
How could you tell the difference?