Document ID: chunk:federal_register_of_legislation:F2024L00708:body:0:p19
Version: federal_register_of_legislation:F2024L00708
Segment Type: other
Provision Reference: 
Character Range: 49841–52710

amortisation. Therefore, when classifying expenses by function, an entity might:
(a) allocate to several function line items (such as cost of sales and research and development) expenses relating to economic resources of the same nature (such as employee benefit expense); and
(b) include in a single function line item an allocation of expenses relating to economic resources of several natures (such as raw material expense, employee benefit expense, depreciation and amortisation).
82 If an entity presents one or more line items comprising expenses classified by function in the operating category of the statement of profit or loss, it shall:
(a) present a separate line item for its cost of sales, if the entity classifies operating expenses in functions that include a cost of sales function. That line item shall include the total of inventory expense described in paragraph 38 of AASB 102 Inventories.
(b) disclose a qualitative description of the nature of expenses included in each function line item.
83 An entity that presents one or more line items comprising expenses classified by function in the operating category of the statement of profit or loss shall also disclose in a single note:
(a) the total for each of:
(i) depreciation, comprising the amounts required to be disclosed by paragraph 73(e)(vii) of AASB 116 Property, Plant and Equipment, paragraph 79(d)(iv) of AASB 140 Investment Property and paragraph 53(a) of AASB 16 Leases;
(ii) amortisation, comprising the amount required to be disclosed by paragraph 118(e)(vi) of AASB 138 Intangible Assets;
(iii) employee benefits, comprising the amount for employee benefits recognised by an entity applying AASB 119 Employee Benefits and the amount for services received from employees recognised by an entity applying AASB 2 Share-based Payment;
(iv) impairment losses and reversals of impairment losses, comprising the amounts required to be disclosed by paragraphs 126(a) and 126(b) of AASB 136 Impairment of Assets; and
(v) write-downs and reversals of write-downs of inventories, comprising the amounts required to be disclosed by paragraphs 36(e) and 36(f) of AASB 102; and
(b) for each total listed in (a)(i)–(v):
(i) the amount related to each line item in the operating category (see paragraph B84); and
(ii) a list of any line items outside the operating category that also include amounts relating to the total.
84 Paragraph 41 requires an entity to disaggregate items to provide material information. However, an entity that applies paragraph 83 is exempt from disclosing:
(a) in relation to function line items presented in the operating category of the statement of profit or loss – disaggregated information about the amounts of nature expenses included in each line item, beyond the amounts specified in paragraph 83; and
(b) in relation to nature expenses specifically required by