Gains and losses are favorable & unfavorable events that do not relate directly to the main operating company, to determine whether the cost / revenue is part of the normal revenue-producing activities is not easy, because the activity is not normal in general is sporadic.Tujuan than this separation is to provide information on the activities of the company during the company’s operations, so it will facilitate the process of comparison between the past with the future.
According to APB distinction statement gains and losses with the main activity, typically gains and losses are classified as extraordinary gains and losses.
Gains
Gains may take the form of transactions (grants) or asset sale transaction rather than inventory, such as fixed assets. Grants: Gains for grants to raise the value of capital, valuation gains made by the current value of assets received.
The sale or exchange of assets: gains arising from this transaction represent the difference between the favorable aspects of the unfavorable, with a current appraisal value. It is the same for favorable and the unfavorable assessment revenues with expenses, such as cost / book value. While the incidence due to changes in currency values, use the basic cost / historical cost is not appropriate and this change usually is not a restatement of capital and an increase in retained earnings.
Timing: The timing gains equal to the determination of revenue determination. But usually gains are recognized when there is certainty over the market price.
In the United States is widely embraced akhir2 accounting practices which recorded gains and losses on investments reply in the form of shares (marketable securities) if there are changes in stock prices, although the sales transaction. It is acceptable on the grounds of its verifiable and liquidity.
Losses
Losses are the expiration value that has nothing to do with the normal activities of the company. Measurement of losses equals to the measurement of expenses. A cannot be delayed losses or shifted to the next period if the numbers are clear and measurable.
APB Statement No. 3, states: “a general price level index, not the index of prices for certain goods and services, should be used as the basis for the preparation of financial statements … .. Purpose of the general price level restatement is to restate financial statements using the historical dollar’s purchasing power perubahan2 general than the dollar, and this goal can only be achieved with the use of public price level “.
So it can be concluded, that the presentation of gains and losses in the financial statements do not describe in detail the results & load, but simply presents the net result, for example, profit / loss on sale of fixed assets.
