Other income
In one sentenceRevenues and gains that do not come from the business's main activity, such as a gain on selling a fixed asset or renting out an unused part of the building; they are shown after operating profit.
Simply put
Separating them from sales protects the reader from misleading figures: a business that lost money on its activity and then sold land at a large gain should not appear to have performed well operationally.
If other income recurs every year in large amounts, ask: has it actually become part of the main activity?
Worked example
A contracting business sold an old car for 35,000 SAR, and its carrying amount (cost less accumulated depreciation) was 25,000 SAR.
Selling price35,000
Carrying amount of the car(25,000)
Gain on sale = 35,000 − 25,000 (other income)10,000 SAR
Don't confuse it with
Other comprehensive incomeOther income goes into net profit, and other comprehensive income does not.
in FullScreen ERP
The fixed assets module calculates the capital gain or loss on sale or disposal. Fixed assets