Operating Expenses
Code: 5100
👁 Views: 107
Account Information
| Financial Statement | Income Statement |
| Normal Balance | Debit |
Definition
Expenses related to main operations
Sub-accounts
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 1
Presentation of Financial Statements
US GAAP
ASC 225
Income Statement
❓ Frequently Asked Questions
Q: What is the difference between operating and non-operating expenses?
A: Operating: related to main activity (e.g., cost of sales, salaries, rent, marketing). Non-operating: related to secondary or financing activities (e.g., interest expense, loss on asset sale, foreign exchange losses).
Q: Can operating expenses be presented by function or nature?
A: Yes, by function (e.g., cost of sales, selling expenses, administrative expenses) or by nature (e.g., materials, labor, depreciation, advertising). Standards allow both methods with additional disclosure.