Venus Cellular Limited (Venus) is the leading, worldwide provider of a wide variety of telecommunications equipment and services. Its telecommunications equipment and services enable its customers to send or receive virtually any type of voice or data transmission. Its customers include fixed line and wireless telecommunication operators, Internet service providers, governments, and businesses. Venus prepares its financial statements in accordance with International Financial Reporting Standards (IFRSs).

Consolidated Statement of Comprehensive Income
		20X1	20X0
	(US$ millions except per share data)
Revenues		16,419	15,305
Cost of sales		-10,629	-9,539
Gross profit		5,790	5,766
Administrative and selling expenses		-2,500	-2,430
Research and development costs		-1,804	-1,863
Operating income current		1,486	1,473
Share-based payments (stock option plans)		-86	-75
Restructuring costs		-138	-405
Impairment of capitalized development
Gain on one time contractual settlement		161	863
Operating income		1,423	863
Interest expense		-273	-283
Interest income		153	131
Finance costs		-120	-152
Income from sale of assets		1,858	244
Income before tax and associates		3,161	955
Income tax expense		-114	-45
Share in net income (losses) of associates		-18	-76
Profit or loss		3,029	834
Dividends		-265	-247
Retained profit or loss		2,764	587
Other comprehensive income:
Cash flow hedges		17	20
Available for sale financial assets		-50	25
Share of other comprehensive income of associates		13	5
Total comprehensive income for the year		2,744	637
Profit or loss for the year attributable to:
Owners of the parent		1,951	537
Noncontrolling interests		1,078	297
Basic earnings per share (in US$)		3.76	1.49
Diluted earnings per share (in US$)		3.76	1.49

• Question 1 Identify whether the analysis of expenses in profit or loss is presented by nature or function.