Revenue from Foreign Exchange Transactions and Transfer Services
The Company's revenue is primarily generated from fees and foreign exchange spreads earned on international money transfers conducted on behalf of customers. Revenue is recognized at the point in time when the transaction is settled, as this is when the performance obligation to the customer is satisfied.
The transaction price, which represents the consideration expected to be received, is readily determinable upon settlement. This typically includes a combination of transaction fees and foreign exchange margins. Turnover reflects the total value of these fees and margins recognized during the period.
Cost of Revenue
The cost of revenue primarily comprises the costs associated with sourcing foreign exchange in the market to fulfill customer transactions. This includes the direct cost of acquiring foreign currencies at prevailing market rates, as well as any related transaction costs incurred during the process. These costs are recognized at the point in time when the associated revenue is recognized, ensuring that the cost of revenue is matched with the corresponding revenue in the same accounting period.
Foreign Exchange Margin
The foreign exchange margin is generated from the difference between the exchange rate offered to the customer and the rate at which the currency is sourced in the market. This margin, along with the transaction fee, is agreed upon with the customer at the time of the transaction and contributes to the overall revenue.
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.