Revenue disaggregation disclosure

Logistics companies typically earn revenue from multiple distinct streams (freight, warehousing, customs brokerage, last-mile, value-added services) with different risk, timing and margin profiles, requiring disaggregated disclosure so users can understand how economic factors affect revenue. A single blended revenue line masks which service lines are growing, shrinking, or carrying disproportionate risk, weakening investors' and lenders' ability to assess future cash flow quality.

What distinct revenue streams does the entity earn (freight forwarding, warehousing, customs brokerage, last-mile delivery, value-added services), and do the categories used for disclosure align with how management actually evaluates revenue and performance internally? Would investors need this level of breakdown to understand differences in margin, contract duration, or geographic risk across these streams? Is each disaggregated category measured using the same recognition and allocation principles already applied under IFRS 15, simply re-grouped for disclosure?

1) Identify the distinct revenue streams the entity earns from (freight forwarding, warehousing, customs brokerage, last-mile delivery, value-added services). 2) Determine the categories management actually uses internally to evaluate revenue and performance (aligning disclosure categories with internal reporting wherever possible). 3) Consider additional useful disaggregation dimensions: domestic vs. international, timing of recognition (point in time vs. over time), and customer type. 4) Present the disaggregated revenue disclosure, typically as a table, reconciled to total revenue and to segment revenue where segments are also disclosed. 5) Reassess disaggregation categories periodically as the business mix evolves (e.g. a growing e-commerce fulfillment line may warrant its own category).

Disaggregation is a presentation/disclosure matter rather than a separate measurement basis; measure each disaggregated category using the same revenue recognition principles (transaction price allocation, timing) already applied under IFRS 15, simply re-grouped for disclosure purposes into categories that best depict how revenue and cash flows are affected by economic factors.

Disclose: (1) a disaggregated revenue table by service line and/or timing of recognition (over time vs. point in time); (2) a reconciliation of the disaggregated categories to total revenue and to reportable segment revenue where both are presented; (3) the basis and judgment applied in selecting disaggregation categories; (4) any changes to disaggregation categories period-over-period and the reason.

• Providing only a single total freight revenue line when distinct service streams with different economics exist, obscuring performance trends
• choosing disaggregation categories that do not align with internal management reporting, reducing the disclosure'
• s usefulness and creating reconciliation burden
• failing to update categories as the business evolves, leaving a fast-growing new service line buried within a legacy category
• omitting the reconciliation to segment revenue when both disclosures are required.