The primary performance obligation (cleaning) is performed at a point in time once the cleaning process has been
completed based on the following indicators:
- The client only benefits from the processing upon completion.
- Senwes only has a right to be paid once processing has been completed.
- Senwes only transfers physical possession of the product of which the value has been enhanced, back to the client, once
processing is completed.
Thus, the full revenue from the transaction price is recognised upon completion of the processing activity by Senwes.
Commission received
Commission is received on the procurement and sale of grain.
Revenue is recognised at the point in time when grain is delivered.
Servicing of equipment
The customer is charged for time spent and/or parts/consumables. If it is not possible to complete the service due to further
faults, the client is liable for the charges for time spent and materials used to the point when the service ceases.
If the service does not take a significant period of time to perform, the revenue will be recognised when the service is
completed. However, if the service does take a significant amount of time, revenue will be recognised as the customer’s asset
is enhanced and Senwes obtains a right to payment.
Credit initiation fees
The client pays Senwes the initial fee to perform certain necessary work and to prepare loan documentation.
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 put the loan agreement in place have been completed.
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 counter-party, sell its rights and
obligations from this transaction to the counter-party by assignment.
Senwes is appointed by the counter-party to administer the accounts and collect the amounts due to the counter-party, 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 counter-party receives and consumes the
benefit from the service as its being performed.
The counter-party pays Senwes a monthly management fee based on a percentage of the average account balances
administered for the duration of the month. This 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 associate.
This performance obligation is satisfied by Senwes over a period of time as the customer receives and consumes the benefit
from the service as its 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.
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).
95
SENWESBEL ANNUAL FINANCIAL STATEMENTS 2020 Senwesbel Limited Reg no: 1996/017629/06