DEFINITION of 'All-Inclusive Income Concept'
A method of income reporting that includes the total non-owner changes in equity on a company's financial statements. It excludes investments by owners and distributions to owners. Following the all-inclusive income concept, all items, including extraordinary and nonrecurring gains and losses, are incorporated into the income statement. Since all gains and losses are reported on the income statement, this type of income reporting results in what is sometimes referred to as comprehensive income.
BREAKING DOWN 'All-Inclusive Income Concept'
The all-inclusive income concept involves the reporting of all gains and losses on a company's income statement. By including all items that relate to gains and losses, such as changes in accounting policies, a more comprehensive picture of the firm in obtained. The American Institute of Certified Public Accountants' (AICPA) Accounting Principles Board began leaning towards the all-inclusive income concept in 1966.