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Dear Mike,
If a company were to sell its damaged and obsolete inventory for which it has no use to some other company, then would this sale come under “Other Income” or “Revenue” (i.e.- part of main operations)
Thanks in advance.
Surely it’s just a part of revenue
Apart from any other technical considerations, hopefully the proceeds from such a sale would be immaterial in the context of an entity’s total revenue
But these items were included in inventory (and cost of sales) and are now no longer included in inventory – so the proceeds from their sale must surely be matched against the cost of sales figure for the year
Makes sense?
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