Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added tax. Turnover includes revenue earned from the sale and installation of goods and from the rendering of related services.
Sale and Installation of Goods
Revenue from the sale and installation of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer. This typically occurs at the point of installation, when the outdoor play equipment is delivered and installed at the customer’s site.
Deposits received in advance of installation represent part payment for future performance obligations and are recorded as liabilities within the balance sheet under accrued income and prepayments. These deposits are subsequently released to revenue when the installation is undertaken.
Rendering of Services
Revenue from the rendering of services is recognised by reference to the stage of completion of the contract, provided that the outcome of the contract can be reliably estimated. Where the outcome cannot be reliably estimated, revenue is recognised only to the extent that recoverable costs incurred are expected to be recoverable.
Job Cancellations
Where a customer cancels a contract prior to work being undertaken, any deposit received is refunded and no revenue is recognised.