According to the IASB Framework, the financial statement element that 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, is
A. Income.
B. Revenue.
C. Profits.
D. Gains.
Answer:A
A is corrent because the IASB Framework has five elements: asset, liability, equity, income, and expense. The definition given is that of income. Note that income includes both revenues and gains.
B is incorrect. Revenue is a term defined in the FASB Concept Statements.
C is incorrect. Profits are income less expenses.
D is incorrect. The term "gain" is not included in the IASB Framework.
