In accordance with IASB Conceptual Framework which of the following is consistent with the definition of income?
A) increases in economic benefits during the accounting period in the form 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
B) increases in economic benefits during the accounting period in the form of inflows other than those relating to contributions from equity participants
C) increases in economic benefits during the accounting period in the form of cash inflows or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants
D) All of the given answers are correct.

Question

Quizplus · Accepted Answer

According to the IASB Conceptual Framework, income is defined as increases in economic benefits during the accounting period, in the form 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. Option A accurately reflects this definition. Option B only includes inflows, while income can also result from decreases of liabilities. Option C only includes cash inflows, while income can result from enhancements of assets as well. Option D is incorrect as not all given answers are correct; only option A is correct.

In Accordance with IASB Conceptual Framework Which of the Following