IAS1/AASB 101 distinguishes between expenses and losses by categorising items as abnormal or extraordinary in the income statement.

Question

Quizplus · Accepted Answer

IAS1/AASB 101 does not distinguish between expenses and losses based on abnormality or extraordinariness. Instead, expenses refer to costs incurred in generating revenue, while losses refer to reductions in assets or increases in liabilities that are not part of the normal course of business.

IAS1/AASB 101 Distinguishes Between Expenses and Losses by Categorising Items