CERTYNEX IFRS ACADEMY

Mélèze SA pays EUR 90,000 to settle a commercial dispute with a customer. The item is non-recurring but arises from its operating activities (case facts; entity with no specified main business activity). In which category of the statement of profit or loss is this expense classified?

In the operating category, because a non-recurring item arising from operating activities stays there.

In the investing category, because the item will not recur and is not part of ordinary activity.

In the financing category, because settling a dispute extinguishes a debt towards the customer.

In the discontinued operations category, because the item is non-recurring and its amount is significant.