Under the AASB Framework income is now subdivided into:
A) Revenues, which only include sales, fees, interest, dividends, royalties and rent; Gains, which are no different in nature to revenue.
B) Gains, which are regarded as constituting a separate element in the Framework; Revenues, which may only arise in the course of the ordinary activities of the entity.
C) Revenues, which arise in the course of the ordinary activities of the entity; Gains, which may or may not arise in the course of the ordinary activities of the entity.
D) Increases in equity referred to as Gains; reductions in liabilities which are classified as Revenues.
E) None of the given answers.

Question

Quizplus · Accepted Answer

Under the AASB Framework, income is subdivided into revenues, which arise in the course of the ordinary activities of the entity, and gains, which may or may not arise in the course of the ordinary activities of the entity. This approach is consistent with the definition of income as an increase in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants.

Under the AASB Framework Income Is Now Subdivided Into