The company recognises turnover in accordance with the principles set out in Section 23 of FRS 102, based on the transfer of significant risks and rewards of ownership and when the amount of revenue can be measured reliably.
Turnover is measured as the fair value of consideration received or receivable, excluding discounts, rebates, valued added tax and other sales taxes.
Skills Bootcamps
Turnover derived from the delivery of government-funded Skills Bootcamps is done so under time-limited contracts with public sector bodies. These contracts typically include performance-related funding linked to specific milestones, which are as follows:
Milestone 1: Contract signing and initial cohort enrolment
Milestone 2: Submission of funding evidence confirming learner participation and progress
Milestone 3: Submission of funding evidence confirming learner completion
Turnover is recognised in the income statement as follows:
Milestone 1 turnover is recognised in full upon signing of the funding agreement, based on the number of participants enrolled in the contract or cohort. This reflects the point at which the company has obtained enforceable rights to the funding and assumed all relevant performance obligations, having been subcontracted the full delivery responsibility by the funding body.
Milestone 2 and 3 turnover is recognised when the respective milestones have been achieved, which is the point at which the company has prepared the relevant funding submissions for approval. At this stage, the company considers that the relevant services have been delivered and entitlement to the funding is virtually certain.
Other sales
Turnover is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
- the amount of the turnover can be reliably measured;
- it is probable that the company will receive the consideration due under the contract;
- the stage of completion of the contract at the end of the reporting period can be measured reliably; and
- the costs incurred and the costs to complete the contract can be reliably measured.