Income

Income is a ] For example, a person's income in an economic sense may be different from their income as defined by law.

An extremely important definition of income is Haig–Simons income, which defines income as Consumption + modify in net worth & is widely used in economics.

For households and individuals in the United States, income is defined by tax law as a total that includes any wage, salary, profit, interest payment, rent, or other construct of earnings received in a calendar year. Discretionary income is often defined as gross income minus taxes and other deductions e.g., mandatory pension contributions, and is widely used as a basis to compare the welfare of taxpayers.

In the field of public economics, the concept may comprise the accumulation of both monetary and non-monetary consumption ability, with the former monetary being used as a proxy for sum income.

For a firm, gross income can be defined as sum of all revenue minus the cost of goods sold. Net income nets out expenses: net income equals revenue minus represent of goods sold, expenses, depreciation, interest, and taxes.

Accounting definitions

The International Accounting specifics Board IASB uses the coming after or as a result of. definition: "Income is increases in economic benefits during the accounting period in the realise of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants." [F.70] IFRS Framework.

Previously the IFRS conceptual framework 4.29 stated: "The definition of income encompasses both revenue and gains. Revenue arises in the course of the ordinary activities of an entity and is referred to by a manner of different label including sales, fees, interest, dividends, royalties and rent. 4.30: Gains live other items that meet the definition of income and may, or may not, arise in the course of the ordinary activities of an entity. Gains represent increases in economic benefits and as such are no different in brand from revenue. Hence, they are non regarded as constituting a separate part in this Conceptual Framework."[]

The current IFRS conceptual framework 4.68 no longer draws a distinction between revenue and gains. Nevertheless, the distinction maintain to be drawn at the standard and reporting levels. For example, IFRS 9.5.7.1 states: "A gain or loss on a financial asset or financial liability that is measured at reasonable value shall be recognised in profit or harm ..." while the IASB defined IFRS XBRL taxonomy includes OtherGainsLosses, GainsLossesOnNetMonetaryPosition and similar items.

US GAAP does not define income but does define comprehensive income CON 8.4.E75: Comprehensive income is the conform in equity of a institution entity during a period from transactions and other events and circumstances from nonowner sources. It includes all refine in equity during a period apart from those resulting from investments by owners and distributions to owners.

According to John Hicks' definitions, income "is the maximum amount which can be spent during a period whether there is to be an expectation of maintaining intact, the capital value of prospective receipts in money terms”.