When and How the Capital gain, Revenue gain/loss is determined.

The simple formula is capital gain or loss, revenue gain or loss when an assets is sales. Most common business practice is if the assets is sales above cost price the difference between Cost Price and sales price is called Capita Gain.  If the assets is sales below written down value, the difference between the written down value and sales price is called revenue loss. If the assets is sales above the written down value, the difference between the written down value and sales price is called revenue gain.

Assets (Cost Price) – Depreciation = Written Down Value.

Sales:

Capital Gain = Sales > Cost Price.

Revenue Gain = Sales > Written Down Value.

Revenue Loss = Sales < Written Down Value.