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.
Sale of games
Revenue from the sale of games is recognised when all of the following conditions are satisfied:
a) The company has transferred the significant risks and rewards of ownership to the buyer;
b) The company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
c) The amount of revenue can be measured reliably;
d) It is probable that the company will receive the consideration due under the transaction; and
e) The costs incurred or to be incurred in respect of the transaction can be measured reliably.
Sale of publishing rights
Revenue from the sale of publishing rights is recognised when contracts are signed. All consideration including deferred is recognised immediately. Deferred consideration is typically in the form of future royalties receivable and/or agreed guaranteed royalty payments. Expected future royalties are measured based on a prudent estimate of future sales performance of the game. Any expected future royalties receivable after more than one year are measured initially at fair value. At the end of each reporting period the expected future royalties receivable are assessed for objective evidence of impairment. If objective evidence of impairment is found an impairment loss is recognised in the statement of comprehensive income.