Regarding classification of expenses by nature versus function, under ASPE, an entity is required to
A) present an analysis of expenses based on their nature.
B) present their expenses according to their nature.
C) present expenses in a manner that is most transparent.
D) present their expenses according to their function.

Question

Quizplus · Accepted Answer

Under ASPE, the primary consideration for presenting expenses is to do so in a manner that is most transparent for the users of the financial statements. This allows for the most useful presentation of financial information, although specific guidance on nature versus function classification is not as prescriptive as under IFRS.

Regarding Classification of Expenses by Nature Versus Function, Under ASPE