Written about
Ind AS 118: presenting expenses by function, and the note that comes with it
Present operating expenses by function and Ind AS 118 asks for the nature amounts in one note. Presenting by nature changes that cost, not the choice.
Chart of accounts
The list of accounts a ledger posts to, and the structure that groups them.
A statutory chart is built for the format it must produce. A management chart is built for the questions the business asks, which are rarely the same questions.
Groups that have grown by acquisition usually hold several, and mapping between them is where most reporting effort goes.
Also written: charts of accounts, COA.
Related terms: MIS, Trial balance, Cost allocation.
Written about
Budget, actual and forecast in one place
Three numbers, usually in three systems, reconciled by hand each month. What it takes to hold them together so the variance is a fact.
Written about
Operating, investing or financing: classifying every line of your P&L
Ind AS 118 sorts every income and expense into five categories. The rule is about the asset or liability underneath, not the expense itself.