Question
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the Group's
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the Group's business. The Group devices revenue from the transfer of goods at point in time. Revenue is shown net of discounts and after eliminating sales within the
Group. Revenue is recognised as follows:
(i) Sales of goods are recognised when a product is sold to the customer. Payments that are related to cake coupons not yet redeemed by the customers are deferred and shown as contract liability under the current liability "cake coupons" in the consolidated balance sheet.
Cake coupons surrendered in exchange for products or upon expiry during the period are
recognised as revenue in the consolidated profit and loss account using the weighted average cake coupon sale value.
(ii) Sales of services are recognised in the accounting period in which the services are rendered.
(iii) Interest income is recognised on a time proportion basis using the effective interest method.
comment and discuss their accounting policies, analyse the financial implications and potential issues associated with their policies.
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