Income before Income Tax

A measure of profitability for the business, and commonly referred to as Net farm income (NFI). Income before income tax (or NFI) includes adjustments (to approximate the accrual basis of accounting) for changes to accounts receivable, inventories, prepaid expenses, raised breeding livestock, accounts payable, accrued liabilities, and other accrual amounts not otherwise already recognized and recorded. Income before income tax (or NFI) includes the gain or loss from the sale of farm assets in the ordinary course of business, and also includes other income or other expenses. (II-16)

Authorization Path: 2.2.5.2.43.1