‘'Income or (-) expenses on non-operating liabilities’ refers to the ‘financing category’ of the statement of profit or loss. It shall include income and expenses coming from liabilities that arise from transactions that do not involve only the raising of finance, as defined in IFRS 18.59(b), 61, B53-54, like interest expenses on trade payables, changes in the carrying amount of a provision reflecting the passage of time, the effect of any change in the discount rate on provisions, the net interest expense (income) on a net defined benefit liability (asset), the lessee’s interest expenses on the lease liability. It shall also include the following:
income or expenses arising from hybrid contracts with a host liability under the conditions specified in IFRS 18.62, B56-57. In particular, under IFRS 18.B56(c)(i), all income and expenses arising from the initial recognition and subsequent measurement, including on derecognition of a hybrid contract with a host financial liability measured at amortised cost are classified in the item ‘'Income or (-) expenses on non-operating liabilities’ (IFRS 18.BC176). Under IFRS 18.B56(c)(iii), interest expense on a hybrid contract with a host financial liability designated at fair value through profit or loss is classified in the item ‘'Income or (-) expenses on non-operating liabilities’ (IFRS 18.BC178), provided that a clean price approach is applied. When a dirty price approach is applied instead, the interest expense shall be classified as part of gains or losses in the item ‘Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net’ in the operating category of the statement of profit or loss;
income or expenses arising from foreign exchange differences and from hedge accounting when they refer to income and expenses reported under the item ‘'Income or (-) expenses on non-operating liabilities’.
For selected items of the income statement further breakdowns of gains (or income) and losses (or expenses) shall be reported. Under IFRS, institutions shall report the gains (or income) and losses (or expenses) in the column referring to the corresponding categories (operating, investing, financing) of the statement of profit or loss. Until the first adoption of the IFRS 18, institutions having a non-calendar financial year-end and institutions under national GAAP based on BAD shall report their amounts using only the column ‘operating’. Templates F16.2 to F16.5 are distinguished by accounting portfolio.