Long-term
The distinction between short-term and other long-term employee benefits is based on the expected timing of settlement
rather than the employee’s entitlement to the benefits. These include a leave provision in respect of existing employees where
leave is not expected to be settled fully within 12 months. Long-term leave is based on historical leave taken.
Termination benefits
An entity shall recognise a liability and expense for termination benefits at the earlier of when the entity can no longer
withdraw the offer of those benefits and when the entity recognises the costs for a restructuring that involves the payment
of termination benefits.
Share-based payments
Equity-settled share-based payments
The scheme will be a forfeitable share award scheme, where shares will be forfeited where future service and performance
conditions are not met. The fair value of the shares granted are determined by using the market value of the shares on
grant date adjusted with the present value of dividends not entitled to. The grant date is the date at which the entity and the
participant agree to a share-based payment arrangement. The share-based payment expense will be recognised over the
vesting period. The vesting period includes the service requirement attached to an award. The above expense will therefore be
recognised and spread over the period from the grant date to the vesting date. The length of this period will vary from tranche
to tranche.
Where the employees are employed by another group company, this company would be the entity receiving the services, and
would have to account for the transaction as an equity-settled share-based payment, with a corresponding increase in capital
contributed by Senwes. Senwes would be the settling entity that needs to account for the transaction as equity-settled, as it
settles the transaction in its own shares with an increase in its investment in the subsidiary. As the shares vest, the investment
will be converted to an interest-bearing loan, interest will be charged at a market related rate.
2.12 REVENUE RECOGNITION
Revenue includes income earned from the sale of goods, income from commodity trading, income from services rendered,
commission income, interest and dividend income. Interest received as a result of credit extension is also stated as revenue
but only to the extent that collection is reasonably assured. Revenue is recognised to depict the transfer of promised goods or
services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for
those goods or services, net of any discounts, rebates and related taxes. The group assesses its revenue agreements in order
to determine if it is acting as a principal or agent. Intragroup sales are eliminated on consolidation.
Revenue from contracts with customers
Services rendered
Storage and handling of grain
As a customer cannot benefit separately from either handling or storage on its own or together with other readily available
resources, handling and storage constitutes a single performance obligation.
This performance obligation is satisfied by Senwes over a period of time as the customer receives and consumes the benefit
of being able to store the product at the silo.
As the customer pays for specific activities to be performed, an output-based method to measure if 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 handling is currently recognised on a fixed ratio-basis, which is derived from the costs and efforts of loading
the product compared to withdrawing it from the silo.
Revenue from storage is recognised as the grain is stored over time.
Processing of grain
Senwes processes grain on behalf of a counter-party. This process includes various actions, i.e.:
- Quality control of grain;
- Fumigation of seed;
- Processing to predetermined condition (including cleaning);
- Packing of processed seed;
- Protection of seed; and
- Storage of seed.
Senwesbel Limited Reg no: 1996/017629/06 SENWESBEL ANNUAL FINANCIAL STATEMENTS 2020 94