Is investment income an income element?

Investment income does not belong to income, income refers to the total inflow of economic benefits formed by the enterprise in its daily activities, which will lead to an increase in the owner's equity and the capital invested by the non-owner, including income from the sale of goods, income from labor services, income from the transfer of the right to use assets, interest income, rental income, dividend income, etc., but does not include the payment collected for third parties or customers.

According to the relevant definition of the Accounting Standards for Business Enterprises - Revenue, the economic benefits added by an enterprise during the accounting period, other than the owner's investment, are usually called income, and the income includes income and gains.

Income refers to the total inflow of economic benefits formed by an enterprise in its daily activities such as selling goods, providing labor services, and transferring the right to use assets, including sales revenue from goods, labor income, interest income, royalty income, dividend income, etc. Profits refer to other benefits other than income, usually obtained from occasional economic operations, and belong to the kind of income that can be obtained or never expected to be obtained without going through the business process, such as assets obtained by enterprises receiving donations or subsidies, fines charged for breach of contract by other enterprises, net income from the disposal of fixed assets or intangible assets, changes in the value of current assets, etc.

From this point of view, the key to distinguishing whether the income is an income element is whether it is formed in daily activities or generated by accidents. The day-to-day activities here refer to all the activities that the enterprise engages in to accomplish its business objectives, as well as other activities related to them.

Whether investment income is an element of income should be determined on a case-by-case basis. There are four main types of investment income: dividend income under the cost method of long-term equity investment and the share of net profit of the invested company under the equity method; Income from the transfer and disposal of long-term equity investments; interest income from long-term debt investments (including amortization of discounts and premiums); Income from the transfer and disposal of long-term debt investments.

For "dividend income under the cost method of long-term equity investment and the share of net profit of the invested company under the equity method accounting" and "interest income from long-term debt investment (including amortization of discount and premium)", they are the income obtained from the transfer of the right to use assets, so they are attributed to the income element; "Income from the transfer and disposal of long-term equity investments" and "income from the transfer and disposal of long-term debt investments" do not belong to the income element, but to the concept of "profits".

In addition to the investment income from the disposal of long-term investments, the gains usually include non-operating income and subsidy income. As for what kind of factors profits should belong to, the accounting system for enterprises does not explain, and the current view is that they are classified as profit factors.

Investment income is derived from income.

Investment self-income refers to the income obtained by enterprises or individuals from foreign investment (the losses incurred are negative), such as dividend income obtained from foreign investment, bond interest income and profits shared by joint ventures with other units.

It is the net income from profits, dividends and bond interest obtained from foreign investment minus investment losses. Strictly speaking, the so-called investment income refers to the monetary income with the project as the boundary.

Investment income does not belong to income, income refers to the formation of enterprises in their daily activities

The DAO will result in the owner's equity return.

The total inflow of increased economic benefits from the capital invested by non-owners, including income from the sale of goods, income from services, income from the transfer of the right to use assets, interest income, rental income, dividend income, etc., but excluding payments collected on behalf of third parties or customers.

Income refers to:

The total inflow of economic benefits formed by the enterprise in its daily activities that will lead to an increase in the owner's equity and the capital invested by the non-owner, including income from the sale of goods, income from labor services, income from the transfer of the right to use assets, interest income, rental income, dividend income, etc., but does not include payments collected for third parties or customers.

Investment income refers to the income obtained by the enterprise from foreign investment (the loss incurred is negative), such as the dividend income obtained by the enterprise from foreign investment, the interest income of bonds, and the profit shared by joint operation with other units.

Comparing the definitions of income and investment income, it can be seen that the income from investments is not income.

1. Investment income is income.

2. Judging from the definition of income: income refers to the total inflow of economic benefits that are formed by the enterprise in its daily business activities, and which have nothing to do with the owner's capital investment, and will lead to an increase in the owner's equity.

Third, from the general enterprise, investment is not the daily business activities of the enterprise, secondly, the investment income accounting is the net inflow of economic interests, when we make entries, we directly use the net amount of income-cost to include in the investment income.

Investment income is a capital gain and is not income in the traditional sense.

Investment income is not income: it can be considered from the following points:

One: One of the characteristics of income is that it is expected that there will be an inevitable inflow of economic benefits, while investment income can be expected from the outset to lead to an outflow of economic benefits. The corresponding subject of income is: goods or services, while investment income is not.

2. From the format of the income statement, it can be seen that income belongs to the income element account, while investment income belongs to the profit element account.

Three: The question is similar to: Are the management expenses incurred as costs? The answer is clearly no.

The book said that dividends and bond interest are investment income and other business income. The first half of the sentence is correct, and the second half of the sentence is wrong. According to the requirements of the new accounting standards for business enterprises, dividends and bond interest are investment income. Investment income itself is a profit and loss account.

Investment income is not part of income. Income refers to the total inflow of economic benefits formed by an enterprise in the daily activities such as selling goods, providing labor services, and transferring the right to use assets, including revenue from sales of goods, income from labor services, interest income, income from user fees, dividend income, etc. Profits refer to other benefits other than the income of the operation, usually obtained from occasional economic operations, and belong to the kind of income that can be obtained or never expected to be obtained without going through the business process, such as assets obtained by enterprises receiving donations or subsidies, fines charged for breach of contract by other enterprises, net income from the disposal of fixed assets or intangible assets, changes in the value of current assets, etc.

Investment income refers to the income obtained by the enterprise from foreign investment (the loss incurred is negative), such as the dividend income obtained by the enterprise from foreign investment, the interest income from bonds, and the profit share from joint ventures with other units. Comparing the definitions of income and investment income, we can see that the income from investments is not actually income.