Revenue from the rental of padel courts is recognized when the service is rendered, which occurs at the time the customer uses the court. Turnover from court rentals is measured at the fair value of the consideration received or receivable, net of VAT, discounts, and other applicable reductions.
Where bookings are made in advance, revenue is deferred until the service is provided. Revenue is recognized at the point the rental service is delivered, as this is when the performance obligation is considered fulfilled.
In the case of additional services, such as equipment hire or coaching, revenue is recognized when the respective service is provided to the customer.
Revenue is only recognized to the extent that it is probable that the economic benefits will flow to the company, and where the amount of revenue can be measured reliably.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
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.