The approach contained in IAS 1/AASB 101, requiring all income and expenses to be included in the determination of profit, is known as:
A) the reporting method approach.
B) the all-inclusive profit approach.
C) the operating approach.
D) the complete profit approach.

Question

Quizplus · Accepted Answer

The approach contained in IAS 1/AASB 101, requiring all income and expenses to be included in the determination of profit, is known as the all-inclusive profit approach. This means that all items of income and expense, including those that may not be directly related to the main business activity, are reported in the financial statements. This approach is in contrast to the operating approach, which only includes income and expenses that are related to the main business activity.

The Approach Contained in IAS 1/AASB 101, Requiring All Income