Explain how the periodicity assumption, revenue recognition principle, and matching concept affect the determination of income.

- The revenue recognition principle under IAS 18 currently specifies five criteria to be met before revenue can be recognized. These conditions are normally met when goods have been delivered or services have been performed and cash collection is reasonably assured.

- The matching concept requires that expenses be recognized in the same period as the revenue it helped generate.

- The application of these principles results in income being measured as the business activity occurs, regardless of when cash is received or paid.