IFRS requires that expenses be presented in the income statement
A) by amount or in alphabetical order.
B) by geographical area or by the single-step method.
C) by nature or by function.
D) by current or non-current.

Question

Quizplus · Accepted Answer

IFRS requires that expenses be presented in the income statement by nature or by function. The nature method classifies expenses according to the type of expense, such as cost of goods sold, salaries and wages, etc. The function method classifies expenses according to the function or purpose of the expense, such as administrative, sales and marketing, etc. Both methods are acceptable under IFRS, but companies must disclose which method they use.

IFRS Requires That Expenses Be Presented in the Income Statement