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Which of the following meets the definition of “revenue” under AASB 15?Group of answer choicesGain on the sale of equity securities held as investmentsAmounts of receivable from customers who have purchased an online serviceGain on the sale of an investment propertyRevaluation increases on the revaluation of operating properties

Question

Which of the following meets the definition of “revenue” under AASB 15?Group of answer choicesGain on the sale of equity securities held as investmentsAmounts of receivable from customers who have purchased an online serviceGain on the sale of an investment propertyRevaluation increases on the revaluation of operating properties

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Solution

The definition of "revenue" under AASB 15 (Australian Accounting Standards Board Standard 15: Revenue from Contracts with Customers) is primarily concerned with income that arises in the course of the ordinary activities of an entity.

Step 1: Understand the definition of revenue under AASB 15 AASB 15 defines revenue as the income that arises in the course of the ordinary activities of an entity. This typically includes the sale of goods, rendering of services, and the use by others of entity assets yielding interest, royalties, and dividends.

Step 2: Evaluate each option against the definition

  • Gain on the sale of equity securities held as investments: This is not considered revenue under AASB 15. It is a gain, not income from the ordinary activities of an entity.

  • Amounts of receivable from customers who have purchased an online service: This meets the definition of revenue under AASB 15. It is income from the ordinary activities of an entity (sale of an online service).

  • Gain on the sale of an investment property: This is not considered revenue under AASB 15. It is a gain, not income from the ordinary activities of an entity.

  • Revaluation increases on the revaluation of operating properties: This is not considered revenue under AASB 15. It is a revaluation increase, not income from the ordinary activities of an entity.

So, the answer is "Amounts of receivable from customers who have purchased an online service".

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