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 goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has
transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
Rendering of services
When the outcome of a transaction can be estimated reliably, turnover from the design services is recognised by
reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to the time
spent.
Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised
that are recoverable.
Construction contracts
When the outcome of a construction contract can be estimated 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 agreed
contractual terms.
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.