Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes.
The policies adopted for the recognition of turonover are as follows:
Sale of land
Turnover from the sale of land is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually when competion of the contract for sale of the land has been enacted by the buyer.
Design and build projects
When the outcome of a design and build project can be measured reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to the architects certification.
Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable.
When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision.
Recharge of planning costs and other expenses
Planning costs and other expenses incurred are recharged to the buyer. Turnover from this source is recognised when the planning permission has been submitted on behalf of the buyer.
Rental income
Rental income from operating leases (net of any incentives given to the lessees) is recognised on a straight line basis over the lease term.