The presentation and disclosure of other equity in the financial statements are critical aspects of financial reporting under the Indian Accounting Standards (Ind AS) Schedule III. Other equity represents the portion of a company’s shareholders’ equity that is distinct from share capital and retained earnings. It comprises various items such as share premium, revaluation reserve, capital reserves, and other reserves created by the entity. Proper presentation and disclosure of other equity provide transparency and enable users of financial statements to understand the composition, changes, and movements in the equity structure of the company. This checklist aims to highlight key considerations for the presentation and disclosure of other equity in the financial statements, keeping in mind the requirements of Ind AS Schedule III.
I. Has the company disclosed the Share Application money pending allotment as a separate line item under Other Equity
II. Whether the company has disclosed refundable share application money under other financial liabilities
III. Has the company complied with Ind AS 32 by splitting compound financial instruments that have both an equity and liability component
IV. Has the equity component of the compound financial instrument been disclosed by the company as a part of Other Equity
V. Has the company presented the liability component of compound financial instruments as a part of Borrowings
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