Happy Days Superannuation Plan provides the following information regarding its assets and receipts for the year ended 30 June 2002: During the period land acquired before 30 June 2001 was sold.The land had a cost of $4 million,a market value at 30 June 2001 of $4.5 million,and was sold for $6 million.What is the revenue of the superannuation plan for the period in accordance with AAS 25?

Question

Happy Days Superannuation Plan provides the following information regarding its assets and receipts for the year ended 30 June 2002:  During the period land acquired before 30 June 2001 was sold.The land had a cost of $4 million,a market value at 30 June 2001 of $4.5 million,and was sold for $6 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 from the sale of long-term investments are recognized as revenue. Therefore, the revenue for the year ended 30 June 2002 would be $6 million (the amount received from the sale of land) plus the investment income of $5,081,000, which gives us a total revenue of $11,081,000.

Happy Days Superannuation Plan Provides the Following Information Regarding Its