FASB contains ten elements of financial statements: assets, liabilities, equity, investments by owners, distributions to owners, comprehensive income, revenues, expenses, gains, and losses. The IASB Framework contains only five elements: assets, liabilities, equity, income, and expense. With US GAAP, the term “income” is not a financial statement element. In US GAAP, the term income is used to describe a calculation of some type or to designate a specific type of income such as interest income. However, with IFRS, the term income is a financial statement element, and the items that are considered “income” are revenues and gains. US GAAP uses the term “net income”.IFRS uses the term “profit”.
