Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the Company's activities. Turnover is shown net of value added tax, returns, customer rebates, discounts and disbursements to the extent that Company is acting as principal. When the company acts as agent turnover is recorded on the basis of net amount retained.
The company recognises revenue for services rendered when;
• The amount of revenue can be reliably measured;
• It is probable that the Company will receive the consideration due and under the contract;
• The stage of completion of the contract at the end of the reporting period can be measured to reliably by reference to either the input costs or the contracted outputs and deliverables; and
• The costs incurred and the costs to complete the contract can be measured reliably