07-14-2006, 12:39 PM
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by rememberence</i>
<br /><blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by amdcai</i>
<br />The IASB Framework states that The definition of income encompasses
both revenue and gains.
Revenue arises in the course of the ordinary activities of an entity and is referred to by a variety of different names including sales, fees, interest, dividends, royalties and rent.
Gains represent other items that meet the definition of income and may, or may not, arise in the course of the ordinary activities of an entity. Gains represent increases in economic benefits and as such are no different in nature from revenue. Hence, they
are not regarded as constituting a separate element in this Framework.
Do you agree with me that distinguishing between them according to the IASB framework is vague ?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
You cant say that some writer has put vague definition. And you are talking about IASB!
Have your concept cleared here>>>
Income includes revenue and gains>>agree??
Revenue represents the core activities of your business like Manufacturing company's revenue is related to fertilizer product (just take an example)
Whereas gains are supplement to the business like gain on sale of fixed assets, it doesnt represent your core activity thats why IAS 16 specifically prohibits you from showing gain on sale of fixed assets as revenue.
So the distinction is very much clear.
Hope it clarifies..
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
I know the distinction between them very well, the distinction is not clear according to the IASB framework, could you explain to me the phrase "may, or may not" . If i don't know the distinction between them i could say that Gains may arise in the course of the ordinary activities of an entity.
<br /><blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by amdcai</i>
<br />The IASB Framework states that The definition of income encompasses
both revenue and gains.
Revenue arises in the course of the ordinary activities of an entity and is referred to by a variety of different names including sales, fees, interest, dividends, royalties and rent.
Gains represent other items that meet the definition of income and may, or may not, arise in the course of the ordinary activities of an entity. Gains represent increases in economic benefits and as such are no different in nature from revenue. Hence, they
are not regarded as constituting a separate element in this Framework.
Do you agree with me that distinguishing between them according to the IASB framework is vague ?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
You cant say that some writer has put vague definition. And you are talking about IASB!
Have your concept cleared here>>>
Income includes revenue and gains>>agree??
Revenue represents the core activities of your business like Manufacturing company's revenue is related to fertilizer product (just take an example)
Whereas gains are supplement to the business like gain on sale of fixed assets, it doesnt represent your core activity thats why IAS 16 specifically prohibits you from showing gain on sale of fixed assets as revenue.
So the distinction is very much clear.
Hope it clarifies..
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
I know the distinction between them very well, the distinction is not clear according to the IASB framework, could you explain to me the phrase "may, or may not" . If i don't know the distinction between them i could say that Gains may arise in the course of the ordinary activities of an entity.
