What's the Difference

CFA Level I
#1

Hi Guys,

The last definition can be rearranged as follows: net income equals (i) revenue minus expenses in the ordinary activities of the business, plus (ii) other income minus other expenses, plus (iii) gains minus losses.

(Institute 152)

Institute, CFA. 2016 CFA Level I Volume 3 Financial Reporting and Analysis. CFA Institute, 07/2015. VitalBook file.

The citation provided is a guideline. Please check each citation for accuracy before use.

I’m failing to understnad the difference between other income/other expenses and gains and losses?

#2

Other income/expenses would include things like interest and dividend income from investments.

Gains and losses would result from selling long-term assets.