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 the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Construction Contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by
reference to the stage of completion of the contract activity at the Balance Sheet date. This is normally measured by
the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs,
except where this would not be representative of the stage of completion. Variations in contract work, claims and
incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered
probable.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the
extent of contract costs incurred where it is probable they will be recoverable. Contract costs are recognised as
expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an
expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a
subsequent period.
When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an
expense immediately.