Income measurement Concepts Accounting Income consists of Permanent Component--the recurring component expected to persist indefinitely Transitory Component--the transitory (or non- recurring) component not expected to persist (Note: The concept of economic income includes both permanent and transitory components. Value Irrelevant Component--value irrelevant components have no economic content; they are accounting distortionsAccounting Income consists of: • Permanent Component--the recurring component expected to persist indefinitely • Transitory Component--the transitory (or non- recurring) component not expected to persist (Note: The concept of economic income includes both permanent and transitory components.) • Value Irrelevant Component--value irrelevant components have no economic content; they are accounting distortions Income Measurement Concepts