Classification of expenses

Expenses are classified under headings on the statement of financial performance.

View this short video to find out more. Click on the video to view in full screen.

What is the issue?

Information about expenses supports stewardship and accountability. But analysing expenses in multiple ways for different users creates a burden for NPOs. Should NPO expense analysis have a standard format? If so, should expenses be summarized by nature or by function?

Deep dive

To get a more in depth understanding of our thinking about the classification of expenses read the IFR4NPO Consultation Paper Part 2: Issue paper 8 available here.

The journey so far

Initial ideas were set out in the Consultation Paper issued in January 2021, together with explanatory videos.  Part 2 Issue 8 of the Consultation Paper set out specific alternative approaches which were presented in a webinar in Aug 2021, before the consultation response period closed in Oct 21. The project’s feedback on the responses to Part 1 were shared in a webinar in Feb 22. During 2022 and 2023, the Technical and Practitioner Advisory Groups (TAG and PAG) have reflected on the responses and given feedback on the development of draft guidance for inclusion in INPAG ED3, expected for release in 2024.

You can access all the resources from this page with the most recent first. Some are available in Spanish (ES) and French (FR) as well as English.

  • 28 May 2024 INPAG Section 24 in Exposure Draft 3
  • 12 Dec 2023 TAG meeting: Paper 2
  • 28 Sep 2023 TAG meeting: Paper 3
  • 11 Sep 2023 PAG meeting: Paper 2
  • 7 June 2023 PAG meeting: Paper 2
  • 18 May 2023 TAG meeting: Paper 6
  • January 2022: Webinar on the topic of classification of expenses here
  • August 2021: Sam Musoke & Karen Sanderson video discussing issues around cost classification here
  • January 2021: IFR4NPO Consultation Paper Part 2: Issue paper 8 – EN | ES


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