Comprehensive Income Vs Revenue

What remains after expenses and taxes are subtracted from revenue revenue is the total amount of money the business receives from its customers for its products and services.

Comprehensive income vs revenue. The types of revenue that a business records on its accounts depend on the types of activities carried out by the business. Or in two separate statements as follows. For individuals however income generally refers to the total wages salaries tips rents interest or dividend received for a specific time period. Comprehensive income is defined by the financial accounting standards board or fasb as the change in equity net assets of a business enterprise during a period from transactions and other events and circumstances from non owner sources it includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Either in a single statement i e. Other comprehensive income comprises revenues expenses gains and losses that according to the gaap and ifrs standards are excluded from net income on the income statement. Net income or net loss is equal. To make it a statement of comprehensive income you carry down the total standard net income show any gains or losses from other comprehensive income and end with a total of the standard net income plus the total other comprehensive income.

For a business income refers to net profit i e. See examples whats included. Comprehensive income revenues and expenses. A standard income statement format has a line for the total revenue lines for various expense categories and a line for the net income total revenue minus total expenses.

Businesses incur expenses in the course of producing revenues. Income statement and statement of comprehensive are differentiated because ias 1 gives two options to present the items of incomes and expenses recognized during the period. Ias 1 para 81 allows that all the items of income and expenses recognized in the period. In general revenues and expenses are recorded on the accounts when the transactions are both.

Revenues expenses gains and losses that are reported as other comprehensive income have not been realized yet. Revenue is the total amount of income generated by the sale of goods or services while income is earnings or profit revenue minus expenses. A more complete view of a company s income and revenues is shown by comprehensive income. Uses of a statement of comprehensive income.