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#cfa-level-1 #reading-25-understanding-income-statement
Expenses may be grouped together either by their nature or function.
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2. COMPONENTS AND FORMAT OF THE INCOME STATEMENT
equired to be presented separately on the face of the income statement. IFRS additionally require that line items, headings, and subtotals relevant to understanding the entity’s financial performance should be presented even if not specified. <span>Expenses may be grouped together either by their nature or function. Grouping together expenses such as depreciation on manufacturing equipment and depreciation on administrative facilities into a single line item called “depreciation” is an example of a


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