Intermediate Accounting 4 The Income Statement and Income Recognition Elements of the Income statement-Gains Gains are increases in a companys equity(net assets) from peripheral or incidental transactions of the company and from all other events and circumstances affecting the company auring a period excep those that result from revenues or investments by ownersElements of the Income Statement — Gains Gains are increases in a company’s equity (net assets) from peripheral or incidental transactions of the company and from all other events and circumstances affecting the company during a period except those that result from revenues or investments by owners. Intermediate Accounting 4 The Income Statement and Income Recognition