Accounting · Financial Statements

IFRS 18 'Presentation and Disclosure in Financial Statements' requires an entity to present operating expenses in a way that provides the most useful structured summary, by nature or by function. Which of the following should be presented in the statement of profit or loss of a manufacturing entity that classifies expenses by function? 1. Raw materials and consumables used 2. Distribution costs 3. Employee benefit costs 4. Cost of sales 5. Depreciation and amortisation expense