In the new accounting standards for business enterprises, there are two kinds of profits. This paper will analyze these two benefits in detail to help you master the new standard better.

Income directly included in current profits

This profit will be directly included in the current profit and loss, including disposal of non-current assets, exchange of non-monetary assets, debt restructuring, government subsidies, inventory gains, donations, etc. These will be included in the "non-operating income" subject.

Income directly included in owner's equity

This kind of profit is formed by the non-daily activities of the enterprise, which will not directly affect the profit, but will increase the owner's rights and interests. For example, the fair value of available-for-sale financial assets exceeds the book value and so on.

Profits lead to an increase in owners' equity.

No matter what kind of profit, it will eventually lead to the increase of owner's equity. This is a necessary condition for the growth of enterprises.