Revenue is recognised to the extent that the company obtains the right to consideration in exchange for its performance. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, VAT and other sales taxes or duty. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from the provision of services, including video production and information technology consultancy, is recognised by reference to the stage of completion at the reporting date. The stage of completion is determined by comparing costs incurred to date with the estimated total contract costs. Where the outcome of a contract cannot be estimated reliably, turnover is recognised only to the extent of recoverable expenses incurred.
Turnover is recognised when it can be measured reliably, it is probable that economic benefits will flow to the company, and the stage of completion and associated costs can be reliably measured.