Corporate social responsibility costs are treated as non-cost items, with separate disclosure in the profit reconciliation statement. CSR expenditure is treated as an application of income and not as a business cost. Both CSR spending and any income or surplus arising from CSR projects, programs or assets are treated as non-cost items and are excluded from cost of sales, with separate presentation in the profit reconciliation statement. Capital expenditure on CSR assets is charged to profit and loss and is not recognised as an asset for cost purposes. Unspent CSR amounts, excess spending above the statutory threshold, and wrongly classified CSR items are also to be treated and disclosed in accordance with the prescribed reporting framework.