07-13-2006, 07:03 PM
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 ?
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 ?
