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Accounting




Gains


In accounting, gains are a component of an entity’s income that may, or may not, arise in the ordinary course of business/ activities (core activities). However, gains represent other income items that contribute to economic resources available to an entity. Examples of gains include sales/ disposal of fixed assets/ long-term assets or broadly non-current assets. Gains are similar in nature to revenues (which are also a component of income) as both types of income reflect an increase in economic resources. However, gains may, or may not, arise in the normal course of business/ activities.

Gains may also encompass paper gains (unrealized gains) which arise, for example, on the revaluation of marketable securities or from increases in the carrying amount of long-term assets. For presentation purposes, gains are typically depicted as a separate set of items on the statement of income (SOI) of an entity, rather than as part of revenues. Separation of revenue and gains helps the user of financial statements make more educated decisions in relation to their relationship with an entity.



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Accounting is the language of business, everywhere, worldwide. It is the means by which virtually every business communicates information about its operations, irrespective of size, scale, objectives, ...
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