Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. There is no element of revenue earned from the sale of goods, revenue is for the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Revenue recognition
Turnover from the rendering of services is recognised on an accruals basis. The normal practice is for revenue generation on the same day the services are provided, with the exception of a small number of contacts where revenue is received in arrears. Normally there is no income in advance.
The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.