All-Inclusive Income Concept

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.

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RELATED FAQS
  1. What is the difference between comprehensive income and gross income?

    Learn the specifics of both comprehensive income and gross income, how they are legally defined, and the primary difference ... Read Answer >>
  2. What are the differences between comprehensive income and other comprehensive income?

    Learn what the accounting terms "comprehensive income" and "other comprehensive income" can tell an investor's financial ... Read Answer >>
  3. How are the three major financial statements related to each other?

    Learn why investors analyze a company's financial statements, and how the income statement, balance sheet and cash flow statement ... Read Answer >>
  4. What are some examples of items that count as comprehensive income?

    Take a look at some of the more common examples of other comprehensive income, or OCI, and learn how OCI differs from standard ... Read Answer >>
  5. What is the difference between gross income and earned income?

    Being able to distinguish between earned income and gross income is an important tool in preparing for and filing your individual ... Read Answer >>
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