Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances.
Revenue from the sale of goods 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 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 entity; and
|
|
· |
The costs incurred or to be incurred in respect of the transaction can be measured reliably.
|
|
(2) |
Customer returns and rebates
|
The customer returns, rebates and other credits are being deducted from revenues. Although, in general, the Group does not grant rights of return and rebates, its enable for certain customers from time to time to return products. The Group assesses the expected customer returns and rebates according to specific information in its possession and its past experience in similar cases. According to IAS 18, these provisions are reduced from the Company's revenues.
Interest revenue is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount.
Dividend revenue from investments is recognized when the shareholder’s right to receive payment has been established.
