CA
770 Points
Joined July 2008
Profit or loss from sale of asset is not an extra-ordinary activity. Sale of asset is an incidental activity. It is true that this is not extra-ordinary item but still the disclosure regarding the profit/ loss on sale of assets is required in accordance with Para 12 of AS-15, which reads as under:
"When items of income and expense within profit or loss from
ordinary activities are of such size, nature or incidence that their
disclosure is relevant to explain the performance of the enterprise for
the period, the nature and amount of such items should be disclosed
separately."