Items of Revenues and Gains to be disclosed in balance sheet
The following are the items of incomes and gains, which should be shown separately:
1. Turnover: Under this head, both monetary and quantitative figures of sales effected by the company should be given separately for each class of goods, which the company deals with. The management has to devise a reasonable basis for classifying the goods. The auditor should review the same and determine whether such classification is prima facie fair and reasonable. If any item, which in value individually accounts for 10% or more of the total value of turnover should be shown separately.
2. Gross Income: The companies rendering or supplying services should disclose the gross income from such services. Likewise, the companies other than manufacturing, trading or service companies should disclose the gross income derived under different heads.
3. Income from Investments: Income received from investments should be shown by distinguishing between income from trade investments and income from other investments. Other income by way of interest should also be disclosed showing the nature of the income. If the income is stated in both the above cases is in gross, the amount of income tax deducted on such income should be shown separately.
4. Profits on Investments: If the company earns any profit on investments, it should be shown separately.
5. Dividends from Subsidiary Companies: Dividends if any received by the company from its subsidiary companies it should be shown separately.
6. Miscellaneous Income: Miscellaneous income includes other incomes by way of interest etc. If the company receives any of such incomes, it should be shown separately. If gross income is stated, the amount of income tax deducted, if any, should also be shown separately.