BC81 IAS 1 required an entity to present profit or loss, but no other specific subtotals. The lack of specific requirements in IAS 1 led to diversity in reporting, making it difficult for users of financial statements to understand the information presented in the statement of profit or loss and compare information between entities. In response, the IASB developed new requirements for the structure of the statement of profit or loss to increase the comparability and understandability of information presented in that statement.
BC82 The IASB decided to require an entity to classify income and expenses included in profit or loss - other than income and expenses related to income taxes or discontinued operations - into three categories:
(a) operating (paragraphs BC88-BC102);
(b) investing (paragraphs BC103-BC147); and
(c) financing (paragraphs BC148-BC199).
BC83 The IASB also decided to require an entity to classify in the discontinued operations category income and expenses related to di
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