Increase in economic benefit due to:

1. Asset inflows
2. Enhancements to assets
3. Liability reductions

Results in an increase in equity

Examples: Sales of products, provision of services, receipt of grants/funds

QS: What are revenues

1. Asset inflows: cash or other assets coming into the Company
2. Enhancements: assets becoming more valuable
3. Liability reductions: owing less to the Company’s creditors

For example, ACR provides accounting services to a client. The client will typically pay a fee, resulting in cash inflows. Adding to this example, imagine the client is also their landlord. If ACR owes rent to the landlord, but then provides accounting services, the landlord may reduce their debt by the applicable amount.

QS: What are some revenue streams? Get creative, there are hundreds of different ones.