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GAAP vs. IFRS. GAAP (US Generally Accepted Accounting Principles) is the accounting standard used in the US, while IFRS (International Financial Reporting Standards) is the accounting standard used in over 110 countries around the world.
Net Income. Definition: Net income is the excess of revenues over expenses. This measurement is one of the key indicators of company profitability, along with gross margin and before-tax income. A common calculation for net income is: Net revenue-Cost of goods sold-Administrative expenses-Income taxes = Net income.