In accordance with AASB 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.
E)None of the given answers.

Question

Quizplus · Accepted Answer

The Australian Accounting Standards Board (AASB) adopts the International Financial Reporting Standards (IFRS) framework, which includes definitions for various accounting terms, including income. According to the AASB/IFRS 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.
Given the options provided:
1. 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.
This option is consistent with the definition of income according to the AASB framework, as it encompasses all forms of economic benefits that lead to an increase in equity, excluding contributions from equity participants.
2. Increases in economic benefits during the accounting period in the form of inflows other than those relating to contributions from equity participants.
This option is partially consistent with the definition of income. It includes inflows, which are a form of economic benefit, but it does not explicitly mention enhancements of assets or decreases of liabilities, which are also part of the definition of income.
3. 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.
This option is also partially consistent with the definition of income. It includes cash inflows and decreases of liabilities, but it does not explicitly cover non-cash enhancements of assets, which can also constitute income.
4. All of the given answers.
Since not all the given answers fully align with the AASB's definition of income, this option is not correct.
5. None of the given answers.
This option is incorrect because the first option does align with the AASB's definition of income.
Therefore, the correct answer is:
1. 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.

In Accordance with AASB Framework Which of the Following Is