Policy 2.3.20: Reciprocal Trade (CONTRA)

Effective: April 1, 1999
Responsibility: Vice-President and Chief Financial Officer


There are circumstances whereby the Corporation benefits by exchanging commercial airtime and/or exposure for programming with external entities for combinations of goods and services, including broadcast rights. These arrangements are referred to as reciprocal trade or contra account transactions and are defined as the non-cash exchange of goods and services for the mutual benefit of two or more parties.


Reciprocal trade agreements will have the following limitations:

  • There must be an identified need for the goods or services received and all arrangements must be supported by contracts signed in accordance with the Delegation of Financial Authority (DFA) - for purchase authority as well as for sales authority. Any changes after signing of an agreement must be supported by a properly authorized and signed amendment, attached to the original agreement.
  • All revenues and operating or capital expenditures arising from reciprocal trade arrangements must be valued at the fair value of the goods and services received and recorded on a timely basis in the books of account of the Corporation. The revenue receivable will not be collected, but offset against the payable, while the operating or capital expenditure will create a payable which will not be paid, but offset against the receivable.
  • All agreements must have a specific time limit. They may be subject to cash settlement at the end of the contract or the end of the fiscal year, unless the terms of the agreement are extended for a specific time period.

It is the responsibility of the Network Senior Financial Officers:

  • To review and sign off on the proposal before the arrangement is concluded.
  • To ensure that the value of goods and/or services provided by the Corporation is recorded as revenue and the value of goods and/or services received is recorded as either an operating or capital expenditure in accordance with policy and at equal value (revenue should normally equal expense).
  • To ensure that quoted advertising rates used by the Corporation and revenues recorded are NET of any agency commissions.

Sales commissions for sale of airtime under these arrangements will be in accordance with Sales policy.


  • This policy was updated November 2003.
  • This was originally Corporate Finance and Administration Policy 304.10 - Reciprocal Trade (CONTRA).


Corporate Policies:


All questions pertaining to the interpretation or application of this policy should be referred to the Director, Policy and Internal Control.


Corporate Secretariat.

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