Ducharme Article - GRAP 1 Classification of expenditure

Financial statements tell the story of how the entity has spent the money it earned during the financial year. This story needs to reflect fairly the results of the operations. A fair presentation of expenses is key to forming an understanding of the entity’s operations and their financial effect. GRAP 1 is the Standard that deals with the Presentation of Financial Statements. Financial statements are made up of the elements: assets, liabilities, revenue and expenses. GRAP 1 set out requirements for a consistent presentation and disclosures for expenditure. Which one is better: classification by nature or by function? The linked Ducharme article sets out more information and considerations to the the GRAP 1 classification. Click on link for brochure