📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    âš¡ Azaadi sale - Celebrate Independence Day with Flat 55% Off On all courses! 13 to 17 Aug âš¡ Enroll Now

    Question

    XYZ Ltd. changed the format of its Statement of Profit

    and Loss from ‘nature of expense’ method to ‘function of expense’ method in accordance with Ind AS. The change was made to provide better clarity for management decisions. Which of the following would now be more visible?
    A Depreciation expense as a separate line Correct Answer Incorrect Answer
    B Cost of Goods Sold under operating expenses Correct Answer Incorrect Answer
    C Interest paid to creditors Correct Answer Incorrect Answer
    D Dividend declared Correct Answer Incorrect Answer
    E Cash flows from operations Correct Answer Incorrect Answer

    Solution

    Under the ‘function of expense’ method, expenses are grouped by purpose (e.g., cost of sales, administrative expenses), helping identify departmental profitability and COGS separately.

    Practice Next
    More Presentation of Company Financial Statements Questions
    ask-question

    Not sure which exam is best for you Talk to our expert

    Get My Free Call