<Li> General and Administrative (G&A) expenses - represent expenses to manage the business (salaries of officers / executives, legal and professional fees, utilities, insurance, depreciation of office building and equipment, office rents, office supplies, etc .). </Li> <Li> Depreciation / Amortization - the charge with respect to fixed assets / intangible assets that have been capitalised on the balance sheet for a specific (accounting) period . It is a systematic and rational allocation of cost rather than the recognition of market value decrement . </Li> <Li> Research & Development (R&D) expenses - represent expenses included in research and development . </Li> <P> Expenses recognised in the income statement should be analysed either by nature (raw materials, transport costs, staffing costs, depreciation, employee benefit etc .) or by function (cost of sales, selling, administrative, etc .). (IAS 1.99) If an entity categorises by function, then additional information on the nature of expenses, at least,--depreciation, amortisation and employee benefits expense--must be disclosed . (IAS 1.104) The major exclusive of costs of goods sold, are classified as operating expenses . These represent the resources expended, except for inventory purchases, in generating the revenue for the period . Expenses often are divided into two broad sub classicifications selling expenses and administrative expenses . </P>

What is the first section of an income statement