Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from Rental income and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Rental Income
The company recognises rental income from its residential investment properties within its turnover. This income arises through operating leases on the residential properties and is recognised on a systematic basis that mirrors the pattern in which the benefits derived by the lessee are consumed over the term of the lease, typically on a straight-line basis unless another systematic basis is more representative.
The leases for these residential properties are of a short-term nature, with an average duration of 12 months and income is recorded gross in it's trunover.
Direct expenses relating to residential properties that generated rental income during the period are recorded under 'Cost of slaes and Administrative expenses' in the income statement.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.