The barter system- a new financial instrument and its method of accounting

Barter: a financial and business transaction involving two or more firms in a non-monetary exchange of their products or services. The barter system, in use since ancient times, is the most common and developed form of exchange of goods. In contrast to a simple exchange system, the barter system involves many different varieties of purchase and sales systems. A barter firm is a company which works within the context of a planned, commercial organization. Such organizations determine advantageous conditions for their member firms, calculate current accounts and maintain an information system. The member firms are also kept informed of potential supply and demand barter transactions. In recent years, the influence of globalization and advances in technology have worked in favor of the barter system. The USA, European countries and former East Block nations have been the first to take advantage of this development. In Turkey the barter system, first introduced in the 1990s, is not adequately known. However, should the necessary legal requirements be set in place, awareness of the system increased and work on developing the system be performed, the barter system could become a very useful commercial instrument for Turkey. Key Words: Exchange, Barter, Financial Instrument