Document ID: chunk:federal_register_of_legislation:F2024L00708:body:0:p45
Version: federal_register_of_legislation:F2024L00708
Segment Type: other
Provision Reference: 
Character Range: 121134–123895

classifies income and expenses from the derecognition of a liability:
(a) in the financing category – if the liability arises from a transaction that involves only the raising of finance by an entity that does not provide financing to customers as a main business activity; and
(b) in the operating category – if as part of a supplier finance arrangement an entity derecognises a payable to a supplier and recognises a liability under that arrangement.

Change in use of an asset
B62 A transaction or other event might change the category in the statement of profit or loss in which an entity classifies income and expenses from an asset, without the asset being derecognised. In such cases, an entity shall classify the income and expenses from the transaction or other event in the category in which it classified income and expenses from the asset immediately before the transaction or event. For example, an entity shall classify in the operating category any income or expenses recognised in the statement of profit or loss on the transfer of property from the scope of AASB 116 to investment property in the scope of AASB 140.

Groups of assets and liabilities
B63 Paragraphs B60–B62 set out requirements for income and expenses from an asset or liability from its derecognition, classification and subsequent measurement while held for sale, or from its change in use. A transaction or other event might result in these outcomes for a group of assets (or a group of assets and liabilities) that generated income and expenses that an entity classified in different categories immediately before the transaction or other event. An entity shall classify income or expenses from such a transaction or other event:
(a) in the investing category if, other than any income tax assets, all the assets in the group generated income and expenses that the entity classified in the investing category immediately before the transaction or other event; and
(b) in the operating category otherwise.
B64 For example, an entity classifies:
(a) in the operating category – gains and losses on the disposal of a consolidated subsidiary, if the subsidiary included assets that generated income and expenses that the entity classified in the operating category immediately before the disposal. The gains and losses include the reclassification from equity to profit or loss of foreign exchange differences required by paragraph 48 of AASB 121.
(b) in the operating category – an impairment loss arising on the classification of a disposal group as held for sale by the entity applying AASB 5, if the disposal group included assets that generated income and expenses that the entity classified in the operating category immediately before its classification as held for sale.