What is income or revenue?

• Income encompasses both
• revenue arising in the ordinary course of activities (for example, sales, fees, dividends)
• gains (for example, gains on disposal of non-current assets, and unrealised gains on revaluing assets)
• Gains also represent increases in economic benefits, but they may or may not arise in the ordinary course of an entity’s activities
• Income must be inflows or enhancements of economic benefits that increase assets or reduce liabilities
• Recognition
• An item that meets the definition of income must also satisfy the recognition criteria if it is to be reported as income in the income statement for the reporting period 
• To be recognised as income, the increase in future economic benefits must have arisen and must be able to be measured reliably
• Classification
• By income-generating activities
• By income types
• Sales, fees, commissions, interest, royalties, rent, non-reciprocal transfers

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