Additional Disclosures
Background: During the fiscal year, Lobster Money Ltd entered into an agreement with a strategic partner to receive financial support aimed at facilitating the implementation and promotion of certain branded products and services. The support is provided in various forms, including upfront payments and allocated credits to be used for specific activities.
Accounting Treatment: The financial support received will be recognised as deferred income upon receipt. This deferred income will be gradually recognised as revenue as Lobster Money Ltd fulfils its performance obligations under the agreement.
The allocated credits will also be recognised as deferred income when utilised and will be subsequently recognised as other revenue when the related services are delivered and performance obligations are met.
Judgements and Estimates: The recognition of this financial support involves significant judgement, particularly regarding the timing of revenue recognition and the assessment of whether performance obligations will be met. These judgements could have a material impact on the financial statements.
Contingent Liabilities: Should performance obligations not be met, a portion of the financial support may be subject to repayment. However, management currently expects to meet all obligations, and as such, has not recognized any contingent liabilities related to this agreement.