Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods sold in the normal course of business, net of discounts and sales related taxes.
The Group’s revenue originates (i) from corporate owned stores, (ii) distributors and (iii) the services performed as an original design manufacturer. Revenue from all above categories is recognized when all the following conditions are satisfied:
| ● | the Group has transferred to the buyer the significant risks and rewards of ownership of the goods; |
| ● | the Group has fully rendered service to the contract manufacturing customer by shipping the product to the customer; |
| ● | the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
| ● | the amount of revenue can be measured reliably; |
| ● | it is probable that the economic benefits associated with the transaction will flow to the Group; and the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Specifically, revenue from sale of goods is recognized when the goods are delivered and title has passed.