BC58 In industries with homogeneous products, it is common for entities in the same line of business to exchange products to facilitate sales to customers or potential customers other than the parties to the exchange. For example, an oil supplier may swap inventory with another oil supplier to reduce transport costs, meet immediate inventory needs, or otherwise facilitate the sale of oil to the end customer. The boards noted that the party exchanging inventory with the entity meets the definition of a customer, because it has contracted with the entity to obtain an output of the entity's ordinary activities. Consequently, in the absence of specific requirements, an entity might recognise revenue once for the exchange of inventory and then again for the sale of the inventory to the end customer. The boards decided that this outcome would be inappropriate for the following reasons:
(a) it would have grossed up revenues and expenses and made it difficult for users of financ
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