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Sale of domain name - ifrs accounting treatment


I had a domain name (.com) which I had purchased for $10 10 years ago and I sold it for $12500 now. Is this an income or capital gain? What is the IFRS accounting treatment on sale of domain names?

asked Jul 14 in IAS 16 - Property, Plant and Equipment by draid02

1 Answer

0 votes
It would be CGT, because you were not in the business of trading in
domain names for profit. This is much a similar situation to when
distinguishing gain from income in the case of someone buying a
property, doing it up, renting it out for a while, and then selling
it. If he does this, the rent would be income and the profit from
sale would be gain. But if he were basically a serial restorer,
buying, doing up, and re-selling, he'd be considered a property
developer and profit from the sales would be considered income
rather than gain.
answered Jul 14 by umarhussainia Level 5 Member (10,570 points)
And you have expensed out domain cost in the same year, so the gain you earned though exceptional would be revenue gain.


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