[Ind AS Sch III Checklist] Presentation & Disclosure of Revenue from Operations and Other Income in Financial Statements

The revenue from operations reflects the income generated through core activities of the business, whereas Other Income includes additional revenue sources unrelated to the primary operations. These components are crucial in providing users of financial statements with a complete understanding of a company’s financial performance. To assist users in obtaining a comprehensive understanding, Ind AS Schedule III has outlined a specific format for presenting and disclosing Revenue from Operations and Other Income in financial statements. To ensure an effective and accurate presentation of revenue from operations and other income, companies may consider the following checklist:

I. Whether the company has disclosed the aggregate of Revenue from Operations on the Statement of Profit and Loss?

II. Has the company excluded amounts collected, in the capacity of an agent or on behalf of third parties such as sales taxes, goods, and services taxes, and value-added taxes from its revenue?

III. Has the company included amounts collected on behalf of the principal which results in the gross increase in economic benefits as revenue?

IV. Whether the company grossed up its revenue for the tax billed to the customer and shown the tax payable as an expense, when the company acts as the principal?

V. Where the company collects taxes as an agent, has the company presented revenue net of taxes?

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