IFRS 18: Classifying Income and Expenses

If you're wondering how IFRS 18 will change the classification of income and expenses in your financial statements, this course is for you! Building on the foundational concepts from our IFRS 18: Overview course, this CPE-eligible eLearning course  dives deeper into the complex application challenges of IFRS 18, Presentation and Disclosure in Financial Statements. While the general requirements apply to everyone, specific business models trigger unique classification rules for income and expenses that can drastically change your income statement.

The course begins by providing a brief refresher of the general classification requirements of IFRS 18. Then, we dive into the classification of income and expenses under IFRS 18, including discussion of the concept of specified main business activities (SMBAs). You learn how to assess whether an entity has an SMBA (discussing both SMBAs of investing in assets and providing financing to customers) and how this assessment shifts the classification of income and expenses from the investing or financing classifications into operating under IFRS 18. We also break down how the classification changes when a SMBA is present.

Topics covered include:

• Overview of IFRS 18

• Classifying income and expenses in the statement of profit or loss
• Specified main business activities (SMBAs)

 By the end of this course, you should be able to: 

• Recall the categories used to classify income and expenses in the statement of profit or loss under IFRS 18
• Recognize the specified main business activities (SMBAs) and how they impact the classification of income and expenses