Income that flows into a charity includes a number of components.
Total income = Revenue + Other income
One main component of income is revenue. A charity's size (small, medium or large) is based on its annual total revenue. Charity size determines the financial reporting obligations that a charity must meet, as well as the timeframe for notifying the ACNC of changes.
See our factsheet about revenue for more information.
Other components of income include other income and other comprehensive income (OCI).
Other income is income from transactions that are not part of your charity's ordinary activities but affect your charity's profit and loss.
- realised gain on the sale of assets of your charity. This may include the sale of motor vehicles, equipment, real estate, investments, or assets that are not part of your charity's inventory
- realised gains on foreign currency transactions
- rental income (if not earned as part of your charity's ordinary activities)
- forgiveness of a liability or debt.
Other comprehensive income (OCI)
The difference between 'other comprehensive income' (OCI) and 'other income' is that OCI generally accounts for unrealised gains and losses.
Generally, small charities will not have any OCI. For medium and large charities, some examples of OCI include:
- revaluations on land and buildings (that the charity still holds)
- fair value movements for an equity instrument that is not held for trading where an irrevocable election was made at initial acquisition to account for these fair value movements in OCI*
- foreign currency transaction gains and losses on foreign subsidiaries.
*Depending on your charity’s accounting policy and the election made when applying AASB 9, fair value movements may instead be reportable under Profit and Loss under ‘Other Income’.