An issue in the measurement of earnings is: Should the determination of financial position-that is, the measurement of assets and liabilities-determine income? That can be called a balance sheet or asset and liability perspective. Or should the measurement of income--that is, the process of matching costs and revenues--determine the balances that are necessarily carried forward in the balance sheet? That can be called an income statement or revenue and expense perspective. In stating the issue in that way, it is extremely important to recognize that the issue is not whether the balance sheet or income statement is the more important statement to users.
Shenkir, William G.
"Perspective on the measurement of earnings and Fasb policymaking,"
Accounting Historians Journal: Vol. 3
, Article 7.
Available at: https://egrove.olemiss.edu/aah_journal/vol3/iss1/7