On the Definitions of Income, Expenses and Profit in IFRS
University of Cambridge - Judge Business School
March 27, 2010
Accounting in Europe, Forthcoming
This paper makes two contributions. First, it demonstrates that income and expenses are incorrectly defined in the Framework, and it proposes alternative definitions. Second, the paper identifies that, in part as a consequence of these incorrect definitions, and in part because there are two, conflicting concepts of profit in IFRS, there is, first, no definition of profit in the Framework and, second, inconsistency and needless complexity in the concept of profit in IAS 1. The issues raised in this paper contribute to the current IASB projects on the conceptual framework and on financial statement presentation.
Number of Pages in PDF File: 14
Keywords: Income, Expenses, Profit, Comprehensive Income, Conceptual Framework, IFRS
JEL Classification: M41Accepted Paper Series
Date posted: March 28, 2010
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo2 in 0.531 seconds