CAF-1 · Chapter 11 · Question 7 of 15
When presenting the analysis of expenses in profit or loss, IAS 1 allows entities to classify expenses based on two methods. What are they?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Nature of expense and Function of expense.
Explanation
IAS 1 requires expenses to be analyzed using a classification based on either the nature of expenses (e.g., depreciation, materials) or their function within the entity (e.g., cost of sales, administrative).
More IAS 1 Presentation of Financial Statements MCQs
- Q9Regarding the title of financial statements, which of the following is true under IAS 1?
- Q10Which of the following items must be presented as a minimum in the statement of changes in equity?
- Q11How should an entity present the notes to its financial statements?
- Q12In the statement of financial position, what is the rule regarding the classification of deferred tax assets and liabilities?
- Q13Which statement best describes the presentation of 'Other Comprehensive Income' (OCI)?