Turnover represents the fair value of consideration received or receivable for goods supplied and services provided, net of value-added tax (VAT), trade discounts, and other sales-related taxes.
Recognition of Revenue
Revenue is recognised when the significant risks and rewards of ownership have been transferred to the customer, the amount can be measured reliably, and it is probable that economic benefits will flow to the company.
Car repairs, servicing, and MOTs – Revenue is recognised when the service is completed and the vehicle is returned to the customer.
Car sales – Revenue is recognised when the vehicle is delivered to the customer, and the company has no significant continuing involvement in the vehicle.
For all transactions, turnover excludes VAT and is stated net of any discounts or rebates given.
Sale of Goods vs. Services
Goods (car sales) – Revenue is recognised at the point of delivery.
Services (repairs, servicing, MOTs) – Revenue is recognised when the service is performed.
This policy complies with the requirements of FRS 102 Section 23 – Revenue and reflects the company’s principal revenue-generating activities.