SENWES ANNUAL FINANCIAL STATEMENTS 2022
Management fees Senwes will enter into instalment agreements with clients and conclude the related security in respect of such agreements . Following the conclusion of this agreement Senwes may , subject to the approval of the counterparty , sell its rights and obligations from this transaction to the counterparty by assignment .
Senwes is appointed by the counterparty to administer the accounts and collect the amounts due to the counterparty , in the capacity as an agent , in respect of the transaction assigned .
This performance obligation is satisfied by Senwes over a period of time as the counterparty receives and consumes the benefit from the service as it is being performed .
The counterparty pays Senwes a monthly management fee based on a percentage of the average account balances administered for the duration of the month . The managment fee constitutes the revenue stream .
Revenue is recognised on a monthly-basis , which is derived from the agreement between the parties .
Service level agreement income (" SLA ") Senwes performs certain administrative duties to it subsidiaries , joint ventures and associates .
The performance obligation is satisfied by Senwes over a period of time as the customer receives and consumes the benefit from the service as it is being performed .
As the customer pays for specific activities to be performed , an output-based method to measure the completion of the service is appropriate . This entails that revenue is recognised on the basis of the value of services transferred to date relative to the total service promised .
Revenue from SLA is currently recognised on a fixed monthly basis , which is derived from the SLA agreement between the parties .
Precision farming income Senwes make GPS signals available to customers for a specified period .
Revenue is recognised over the period of the agreement , which may be terminated by either party at one month ' s notice .
The customer simultaneously receives and consumes the benefit as the service obligation is performed by Senwes .
Laboratory services Revenue is received on the supply of laboratory services to customers .
The performance obligation is fulfilled at a specific point in time , as opposed to over a period of time . This point in time is when all the procedures to render the service , have been completed .
Brokarage services Revenue includes insurance commissions and fees for services rendered .
Revenues will generally be recognised at a point in time upon the effective date of the underlying policy ( or policies ), to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services .
Income from sale of goods Sale of whole goods / parts without warranty Senwes supplies specified equipment or parts to the customer . No warranty or guarantee is provided .
Revenue is recognised at a point in time when control of the asset is transferred to the customer . The timing of revenue recognition depends on when the ability to direct the use and obtain the benefits from the asset transfers to the customer . This in turn depends on the terms of the sale ( delivery terms , timing of the transfer of risk , etc .).
This may be demonstrated by and will depend on the circumstances as evidenced by a combination of the following :
• When the customer becomes liable to make payment for the equipment ;
• When legal title to the equipment passes to the customer ;
• When physical possession passes to the customer ;
• When the significant risks and rewards of ownership pass to the customer ; and
• When the customer has accepted the asset .
Sale of whole goods / parts with John Deere warranty Revenue terms , conditions and recognition criteria are the same as above except for the warranty provided . The warranty is provided by John Deere and administered by Senwes . As the warranty obligation is on John Deere , Senwes does not recognise any provision for the costs involved with this liability .
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