This revised edition of Tom Lee’s text provides students with an understanding of the nature of income and its relationship to capital and asset value. The continuing arguments over price level, accounting in general and current cost accounting in particular make an understanding of the conceptual framework of income measurement an important requirement for practitioners, students, and teachers. The author has used the 1980 UK current cost accounting standard pronouncement for illustrations, has updated the final chapter on cash flow acounting and reduced the full bibliography to a more accessible length. The text has an interdisciplinary approach to income, and includes worked examples.