Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes.
Turnover comprises income from grants, sponsorship, membership, domestic events and sales and is included in the financial statements on a receivable basis. Income is recognised to the extent that it is probable that the economic benefits will flow to the company and the income can be reliably measured. Income is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and othersales taxes.
The following criteria must also be met before income is recognised:
Grants receivable
Grants are not recognised in the Income Statement until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Grants are measured at the fair value of the asset received or receivable.
Grants that do not impose specified future performance-related conditions on the company are recognised in income when the grant proceeds are received or receivable. Grants that impose specified future performance-related conditions on the company are recognised in income only when the performance-related conditions are met. Grants received before the revenue recognition criteria are satisfied are recognised as a liability.
Where a grant becomes repayable it is recognised as a liability when the repayment meets the definition of a liability.
Any grant aid in kind is not included in turnover.