Document ID: chunk:federal_register_of_legislation:F2025C00209:front:0:p15
Version: federal_register_of_legislation:F2025C00209
Segment Type: other
Provision Reference: 
Character Range: 43041–46135

SMEs Standard paragraph 5.7]

Requirements applicable to both approaches
      1.                     Under AASB 108, the effects of corrections of errors and changes in accounting policies are presented as retrospective adjustments of prior periods instead of as part of profit or loss in the period in which they arise. [IFRS for SMEs Standard paragraph 5.8]
      2.                     An entity shall present additional line items, headings and subtotals in the statement(s) presenting profit or loss and other comprehensive income (and in the statement of profit or loss, if presented), when such presentation is relevant to an understanding of the entity's financial performance. [IFRS for SMEs Standard paragraph 5.9]
      3.                     An entity shall not present or describe any items of income and expense as 'extraordinary items' in the statement(s) presenting profit or loss and other comprehensive income (or in the statement of profit or loss, if presented) or in the notes. [IFRS for SMEs Standard paragraph 5.10]

Analysis of expenses
      1.                     An entity shall present in the statement of profit or loss and other comprehensive income or in the notes an analysis of expenses using a classification based on either the nature of expenses or the function of expenses within the entity, whichever provides information that is reliable and more relevant.

Analysis by nature of expense
           1.                     Under this method of classification, expenses are aggregated in the statement(s) of profit and loss and other comprehensive income according to their nature (for example, depreciation, purchases of materials, transport costs, employee benefits and advertising costs) and are not reallocated among various functions within the entity.

Analysis by function of expense
           1.                    Under this method of classification, expenses are aggregated according to their function as part of cost of sales or, for example, the costs of distribution or administrative activities. At a minimum, an entity discloses its cost of sales under this method separately from other expenses.
          [Based on IFRS for SMEs Standard paragraph 5.11]

Statement of Changes in Equity and Statement of Income and Retained Earnings[5]

Scope of this section
      1.                     This section sets out requirements for presenting the changes in an entity's equity for a period, either in a statement of changes in equity or, if specified conditions are met and an entity chooses, in a statement of income and retained earnings.               [IFRS for SMEs Standard paragraph 6.1]

Statement of changes in equity

Purpose
      1.                     The statement of changes in equity presents an entity's profit or loss for a reporting period, other comprehensive income for the period, the effects of changes in accounting policies and corrections of errors recognised in the period and the amounts of investments by, and dividends and other distributions to, owners in their capacity as owners during the period. [IFRS for SMEs