Problem
Breena Fraser has spent many years of his life panning for gold, with little success. On several occasions, he has found small traces of gold along the usual river banks that he is licensed to pan. However, on his last trip to the Ballarat River, almost by accident he managed to find a very promising piece of rock which he placed in his satchel. He took the rock into town to be examined and valued by experts, who assured him that the rock was a valuable gold nugget and that it was worth at least $30 000. Breena was elated and opened a bottle of champagne to celebrate with his friends.
About 2 weeks later, he sold the nugget to a jeweler for $50 000 in cash.
Task
Based on the Conceptual Framework and IAS 18/AASB 118 Revenue, decide whether and when revenue exists, and decide on the appropriate time for this revenue to be recognised in the accounts of Breena Fraser, Gold Prospector.