Turnover is measured at the fair value of the consideration received or receivable, net of discounts, rebates, and Value Added Tax (VAT). Income is recognized when the revenue can be reliably measured and when it is probable that future economic benefits will flow to the company, based on the specific performance criteria detailed below.
Venue Hire
Income from venue hire is recognized on the date the specific event takes place. Deposits or advance payments received prior to the event date are deferred on the balance sheet within creditors as deferred income.
Bar and Restaurant
Revenue from hospitality, food, and beverage sales is recognized at the point of sale to the customer, which coincides with the delivery of the goods and the collection of cash or card payment.
Theatre Rent
Income from theatre rental agreements is recognized over the period of the lease or rental tenancy on a straight-line basis, reflecting the time-based consumption of the service by the lessee.
Sale of Goods (including Merchandise)
Turnover from the sale of physical merchandise is recognized when the significant risks and rewards of ownership have transferred to the buyer. This typically occurs at the point of physical delivery or collection by the customer. Revenue is recognized on a gross or net basis subject to the final determination of the company’s status as principal or agent in the transaction.
Stage-of-Completion Contracts (including Recharges)
Where services or recharges are delivered over time, turnover is recognized by reference to the stage of completion of the contract activity at the reporting date. This is assessed by matching the progress of the service against contract milestones or costs incurred to date. Revenue is recorded to the extent that it is probable the economic benefits will flow to the company and the company is entitled to recovery, without prejudice to whether the underlying arrangement constitutes a principal or agent relationship.
Deferred income
Amounts received in respect of ticket sales for future performances are recognised as deferred income and released to turnover as the relevant performances take place.