However, it includes both revenue and earnings. Income and profits give rise to an increase in economic benefits during the financial year. Revenue arises from the ordinary activities of an entity or business. Profits represent other elements and cannot arise from the ordinary activities of an entity or business. Income is recognized in the income statement and other comprehensive income (income statement) when the amount can be reliably measured and an increase in future economic benefit correlates with an increase in an asset or a decrease in a liability