Sale of domain name - ifrs accounting treatment

Question

I had a domain name (.***) 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?

Answer 1

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.

Comments

And you have expensed out domain cost in the same year, so the gain you earned though exceptional would be revenue gain.