Document ID: chunk:federal_register_of_legislation:F2024L00708:body:0:p13
Version: federal_register_of_legislation:F2024L00708
Segment Type: other
Provision Reference: 
Character Range: 34225–37021

the operating, investing and financing categories, an entity shall assess whether it has a specified main business activity – that is a main business activity of (see paragraphs B30–B41):
(a) investing in particular types of assets, referred to hereafter as investing in assets (see paragraph 53); or
(b) providing financing to customers.
50 Applying paragraphs 55–58 and 65–66, an entity with a specified main business activity classifies in the operating category some income and expenses that would have been classified in the investing or financing category if the activity were not a main business activity.
51 If an entity:
(a) invests in assets as a main business activity, it shall disclose that fact.
(b) provides financing to customers as a main business activity, it shall disclose that fact.
(c) identifies a different outcome from its assessment of whether it invests in assets or provides financing to customers as a main business activity (see paragraph B41), it shall disclose:
(i) the fact the outcome of the assessment has changed and the date of the change.
(ii) the amount and classification of items of income and expense before and after the date of the change in the outcome of the assessment in the current period and the amount and classification in the prior period for the items for which the classification has changed because of the changed outcome of the assessment, unless it is impracticable to do so. If an entity does not disclose the information because it is impracticable to do so, the entity shall disclose that fact.

The operating category
52 An entity shall classify in the operating category all income and expenses included in the statement of profit or loss that are not classified in (see paragraph B42):
(a) the investing category;
(b) the financing category;
(c) the income taxes category; or
(d) the discontinued operations category.

The investing category
53 Except as required by paragraphs 55–58 for an entity that has a specified main business activity, an entity shall classify in the investing category income and expenses specified in paragraph 54 from:
(a) investments in associates, joint ventures and unconsolidated subsidiaries (see paragraphs B43–B44);
(b) cash and cash equivalents; and
(c) other assets if they generate a return individually and largely independently of the entity's other resources (see paragraphs B45–B49).
54 The income and expenses from the assets identified in paragraph 53 that an entity shall classify in the investing category comprise the amounts included in the statement of profit or loss for (see paragraph B47):
(a) the income generated by the assets;
(b) the income and expenses that arise from the initial and subsequent measurement of the assets, including on derecognition of the assets; and
(c) the