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Financial Statements & Accounting

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Financial Statements & Accounting

Reserves and Surplus

The accumulated profits retained in the business plus other reserves such as securities premium and revaluation reserve.

Reserves and Surplus = Retained Earnings + Securities Premium + Other Reserves ₹ crore Financial Statements & Accounting

Retained Earnings

Cumulative profits a company has kept rather than distributed as dividends, carried forward within reserves.

Closing Retained Earnings = Opening Retained Earnings + Net Profit - Dividends Paid ₹ crore Financial Statements & Accounting

Revenue

The income a company earns from its principal business activities during a period, before any costs are deducted.

Revenue = Units Sold x Average Selling Price, summed across products and services ₹ crore Financial Statements & Accounting

Revenue Recognition

The accounting rules determining when and how much revenue a company may record from a contract with a customer.

Test: recognise revenue when control of the goods or services transfers to the customer, in the amount expected to be received qualitative