If expenses are classified into the groups,cost of sales,selling expenses,administrative expenses and finance expenses,under IAS 1/AASB 101 they are classified by:

Question

Quizplus · Accepted Answer

IAS 1/AASB 101 require expenses to be classified by their function, i.e. whether they relate to cost of sales, selling expenses, administrative expenses or finance expenses. This approach provides useful information to users of financial statements regarding the costs associated with different functional areas of the organization.

If Expenses Are Classified into the Groups,cost of Sales,selling Expenses,administrative