75An entity shall present in the statement of profit or loss line items for (see paragraph B77):

75 An entity shall present in the statement of profit or loss line items for (see paragraph B77):
(a) amounts required by this Standard, namely:
(i) revenue, presenting separately the line items described in (b)(i) and (c)(i);
(ii) operating expenses, presenting separately line items as required by paragraphs 78 and 82(a);
(iii) share of the profit or loss of associates and joint ventures accounted for using the equity method;
(iv) income tax expense or income; and
(v) a single amount for the total of discontinued operations (see AASB 5);
(b) amounts required by AASB 9, namely:
(i) interest revenue calculated using the effective interest method;
(ii) impairment losses (including reversals of impairment losses or impairment gains) determined in accordance with Section 5.5 of AASB 9;
(iii) gains and losses arising from the derecognition of financial assets measured at amortised cost;
(iv) any gain or loss arising from the difference between the fair value of a financial asset and its previous amortised cost at the date of reclassification from amortised cost measurement to measurement at fair value through profit or loss; and
(v) any cumulative gain or loss previously recognised in other comprehensive income that is reclassified to profit or loss at the date of reclassification of a financial asset from measurement at fair value through other comprehensive income to measurement at fair value through profit or loss; and
(c) amounts required by AASB 17, namely:
(i) insurance revenue;
(ii) insurance service expenses from contracts issued within the scope of AASB 17;
(iii) income or expenses from reinsurance contracts held;
(iv) insurance finance income or expenses from contracts issued within the scope of AASB 17; and
(v) finance income or expenses from reinsurance contracts held.
76 An entity shall present in the statement of profit or loss (outside all the categories described in paragraph 47) an allocation of profit or loss for the reporting period attributable to:
(b) owners of the parent.
77 Paragraphs B78–B79 set out requirements on how an entity uses its judgement to determine whether to present additional line items in the statement of profit or loss or disclose items in the notes.

Presentation and disclosure of expenses classified in the operating category

78 In the operating category of the statement of profit or loss, an entity shall classify and present expenses in line items in a way that provides the most useful structured summary of its expenses, using one or both of these characteristics (see paragraphs B80–B85):
(a) the nature of expenses; or
(b) the function of the expenses within the entity.
79 Any individual line item shall comprise operating expenses aggregated on the basis of only one of these characteristics, but the same characteristic does not have to be used as the aggregation basis for all line items (see paragraph B81).
80 In classifying expenses by nature (‘nature expenses’), an entity provides information about operating expenses related to the nature of the economic resources consumed to accomplish the entity’s activities without reference to the activities in relation to which those economic resources were consumed. Such information includes information about raw material expense, employee benefit expense, depreciation and amortisation.
81 In classifying expenses by function within the entity, an entity allocates and aggregates operating expenses according to the activity to which the consumed resource relates. For example, cost of sales is a function line item that combines expenses relating to an entity’s production or other revenue-generating activities such as: raw material expense, employee benefit expense, depreciation and 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 an Australian Accounting Standard to be disclosed in the notes – disaggregated information about the amounts of the expenses included in each function line item presented in the operating category of the statement of profit or loss, beyond the amounts specified in paragraph 83.
85 The exemption in paragraph 84 relates to disaggregation of operating expenses. However, it does not exempt an entity from applying specific disclosure requirements relating to those expenses in Australian Accounting Standards.