Turnover is measured at the fair value of the consideration received or receivable. The fair value of the consideration received, or receivable takes into account the amount of any trade discounts, prompt settlement discounts and volume rebates given by the entity. Revenue is recognised when services are exchanged for dissimilar goods or services in a transaction that has a commercial substance. In that case, the Company shall measure the transaction at the fair value of the goods or services received adjusted by the amount of any cash or cash equivalents transferred.
Construction and long term contracts
Contract billings are recorded on the basis of progress bills prepared by the Company and are considered as revenue to the extent that they are probable of being certified and recovered. Contract revenue is recognised on percentage of completion method. When the outcome of a contract can be estimated reliably, contract revenue and contract costs associated with the contract are recognized and revenue and expenses respectively by reference to the stage of completion of the contract activity at the year end. When the outcome of the contract cannot be estimated reliably, contract revenue is recognized only to the extent of contract cost incurred that are likely to be recoverable.
The stage of completion is determined on the basis of progress on each contract measured by reference to physical estimates by either quantity surveyors or the Directors of the work performed to sate. Conservative proportion of the profit estimated by Directors to be earned on completion of the contracts is considered by reference to the work completed at the year end. Losses, if any, on jobs not completed are provided for when verified.