[Dantrick]

NINJA Question –

I am probably just tired, but how else to this : “Gains

o Increase in equity from an activity or event that is

not central to the main activities of the business

Can be operating or non-operating”

Mainly, what is meant by–not central to the main activities of the business, you can’t have a gain that is part of the business?

[Thrawn]

A gain is different than a revenue in that a gain is usually tangential. For example, if you are a manufacturer and you make bolts, and you have machines that actually turn the raw materials into bolts. When you sell the bolts that is a revenue because it is the normal purpose and activity of the business. If however you sell the machine that creates the bolts and earn more than the basis you have a gain. Because you are not in the business of selling used machinery.

BEC 87 Feb 14
REG 84 Apr 14
FAR 82 Nov 14
AUD 86 Feb 15

[Dantrick]

TY. I was thinking way too hard about it. That totally makes sense, good explanation.

[Author]

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