all-inclusive income concept

all-inclusive income concept A concept used in drawing up a profit and loss account, in which all items of profit and loss are included in the statement to arrive at a figure of earnings; this is the approach adopted in the UK and the USA. Although it is claimed that this basis gives the fullest picture of the operation of an enterprise, it does lead to a volatility in earnings figures as one-off costs, such as redundancies and sale of assets, will be included.