S.L. 281.7 Art. 15

Profit or loss after tax for the period/year

The ‘nature of expense’ method aggregates expenses in the income statement 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. An entity that adopts a classification using the ‘nature of expense’ method presents the following items (which may be combined or amended as appropriate in accordance with paragraph 4.21 of these Principles):