Turnover is recognised to the extent that the Company obtains the rights to consideration in exchange for its performance. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, VAT and sales taxes of duty. The following criteria must also be met before revenue is recognised.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from the provision of car services and repairs is recognised upon completion of the works and acceptance by the customer.
Commissions receivable for arranging vehicle financing and related insurance products are based on agreed rates and income is recognised concurrently with the related vehicle sale.