According to IAS1, an entity must present separately each material class of similar item and must present separately items of dissimilar nature unless they are immaterial.
Items in the face of the financial statements are either classified in order of nature or by function after been aggregated as line items.
In the presentation of financial statements, IAS1 expects the accountant to consider materiality of items of similar and dissimilar nature or function.
Items of similar nature or function, for example, different types of interest expense, are to be presented separately. This items may be aggregated only if they are immaterial and in such a case, the aggregation may be done either in the face of the financial statement or in the notes.
In addition, items of dissimilar nature or function are not to be aggregated, they must be presented separately. However, IAS1 allows for such items to be aggregated only if they are immaterial. As aforementioned, such aggregation can either be done in the Face of the financial statement or in the notes.
The standard further explained that a item that is immaterial should not be given any specific disclosure. This is so because, immaterial items can not affect the overall decision of users.