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.
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.
Sale of licences
Licences are sold as monthly, annual and Lifetime Licences. Ongoing costs associated with licences are less than 5% of Revenue. The Terms of Service indicate there is no contractual obligation to fulfil the term of the licence. A prior period adjustment has been made to recognise income more accurately. Annual licences have been adjusted so that income is recognised over the length of the licences. Lifetime licences have been recognised over a period of three years to more accurately reflect the recognition of income over the period of the licence.