Long-lived Superannuation Plan provides the following information regarding its assets and receipts for the year ended 30 June 2014: During the period,land acquired before 30 June 2013 was sold.The land had a cost of $1 million,a market value at 30 June 2013 of $2 million,and was sold for $2.8 million.What is the revenue of the superannuation plan for the period in accordance with AAS 25?

Question

Long-lived Superannuation Plan provides the following information regarding its assets and receipts for the year ended 30 June 2014:  During the period,land acquired before 30 June 2013 was sold.The land had a cost of $1 million,a market value at 30 June 2013 of $2 million,and was sold for $2.8 million.What is the revenue of the superannuation plan for the period in accordance with AAS 25?

Quizplus · Accepted Answer

According to AAS 25, gains or losses from the sale of non-current assets must be included in the determination of revenue. In this case, the land was sold for $2.8 million, which is a gain of $0.8 million ($2.8 million - $2 million). Therefore, the revenue for the period would be the sum of the receipts ($23.5 million) and the gain from the sale of the land ($0.8 million), which equals $24.3 million.

So, the correct answer is option B, $3,678,000.

Long-Lived Superannuation Plan Provides the Following Information Regarding Its Assets