Document ID: chunk:federal_register_of_legislation:F2024L00708:body:0:p37
Version: federal_register_of_legislation:F2024L00708
Segment Type: other
Provision Reference: 
Character Range: 100233–103148

a contractual arrangement with a third party (for example, a supplier's warranty agreement) against the related reimbursement.
B28 In addition, an entity presents on a net basis gains and losses arising from a group of similar transactions – for example, foreign exchange gains and losses or gains and losses arising on financial instruments held for trading that are included in the same category of the statement(s) of financial performance applying paragraphs 47–68. However, an entity shall disclose such gains and losses separately in the notes if doing so provides material information.

Statement of profit or loss

Categories in the statement of profit or loss
B29 Paragraph 47 requires an entity to classify income and expenses included in the statement of profit or loss in one of five categories. The operating category comprises all income and expenses included in the statement of profit or loss that are not classified in the other categories (see paragraph 52). Income and expenses classified in the discontinued operations category applying paragraph 68 are not subject to the requirements for classifying items of income and expense in the categories listed in paragraphs 47(a)–(d). Income and expenses classified in the income taxes category applying paragraph 67 are not subject to the requirements for classifying items of income and expense in the categories listed in paragraphs 47(a)–(c).

Assessment of specified main business activities
B30 Paragraph 49 requires an entity to assess whether it invests in assets or provides financing to customers as a main business activity. An entity may have more than one main business activity. For example, an entity that manufactures a product and also provides financing to customers may determine that both its manufacturing activity and customer-finance activity are main business activities. To classify income and expenses into the categories of operating, investing and financing as required by this Standard, an entity need only determine whether either of, or both, investing in assets and providing financing to customers are main business activities.
B31 Examples of entities that might invest in assets as a main business activity include:
(a) investment entities as defined by AASB 10 Consolidated Financial Statements;
(b) investment property companies; and
(c) insurers.
B32 Examples of entities that might provide financing to customers as a main business activity include:
(a) banks and other lending institutions;
(b) entities that provide financing to customers to enable those customers to buy the entity's products; and
(c) lessors that provide financing to customers in finance leases.
B33 Whether investing in assets or providing financing to customers is a main business activity of the entity is a matter of fact and not merely an assertion. An entity shall use its judgement to assess whether investing in assets or providing