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
The company’s revenue arises from the provision of bespoke property consultancy and design services, including the preparation of architectural and floor plans, submission and management of planning applications, project management during the build and design phase, interior and exterior design, and the sourcing and procurement of materials in accordance with bespoke designs. Revenue from the rendering of services is recognised when invoiced to clients, which the directors consider to be the point at which the service has been delivered, the amount of revenue can be measured reliably, and it is probable that the economic benefits will flow to the company. Invoices are raised in line with the contractual billing schedule agreed with each client, which is structured to reflect the delivery of services. Where the company receives payment in advance of services being performed, the amount received is recognised as deferred income within creditors and released to revenue as the corresponding services are delivered and invoiced.