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One of the definition of income is 'decrease in liability that results in increase in equity. The example of this income criteria is.?

Accounting Financial Accounting
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Question added by Abdul Basit Khawaja Siddiqui , Divisional Accounts Officer , Multan Electric Power Company (MEPCO) Limited Multan
Date Posted: 2014/04/15
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Muhammad Zubair
by Muhammad Zubair , CFO / Chief Accountant , RH Group

It is the definition as per Framework and every income meet the above criteria

Unith Panakkaparambil
by Unith Panakkaparambil , Accountant , AL JESSOUR BLDG MATERIALS TRADING

if you decrese provisions means your are generating more profit in  P&L a/c. If you do so your liability will be lower & your equity will increase according to increase in porfit

 

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