Financial Statements & Accounting
4 terms
Reserves and Surplus
Financial Statements & Accounting
₹ crore
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
Retained Earnings
Financial Statements & Accounting
₹ crore
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
Revenue
Financial Statements & Accounting
₹ crore
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
Revenue Recognition
Financial Statements & Accounting
qualitative
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