How do you identify the amount of realised gain or loss on
the disposal of an investment asset?



How do you identify the amount of realised gain or loss on the disposal of an investment asset? ..

Answer / guest

By reference to the carrying value in the balance sheet. *
If the asset is valued at market value in the balance sheet
(at the previous period end) then the realised gain or loss
is the difference between the sales proceeds and the market
value at that date. * If the asset is valued at cost in the
balance sheet (e.g. at the previous period end or because
it was purchased since the previous period end) then the
realised gain or loss is the difference between the sales
proceeds and the cost.

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