Skip to content

ACCA Strategic Professional · Strategic Business Reporting (International) · Presentation and disclosure in financial statements

Under IFRS 18 Presentation and Disclosure in Financial Statements, which set of categories must income and expenses in the statement of profit or loss be classified into?

IFRS 18 requires income and expenses in profit or loss to be classified into operating, investing, financing, income taxes and discontinued operations categories. The operating category is the residual. It does not use extraordinary or recurring labels, and current or non-current is a statement of financial position split.

  1. AOperating, investing, financing, income taxes and discontinued operationsCorrect
  2. BRevenue, cost of sales, administrative and other
  3. CRecurring, non-recurring and extraordinary
  4. DCurrent, non-current and discontinued

Explanation

IFRS 18 requires income and expenses to be classified into operating, investing, financing, income taxes and discontinued operations categories. Extraordinary items are prohibited. Recurring versus non-recurring is not a classification category.

Did you get it right without looking?

One question tells you little. A timed set on Presentation and disclosure in financial statements shows your real accuracy, how long you take and where you lose marks.

Practise Presentation and disclosure in financial statementsFree diagnostic mock

More Presentation and disclosure in financial statements questions