This may be demonstrated, 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.
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.
Trade in fuel, meat, vehicles, raisins, cattle hides and sheep skins
Revenue relating to the sale of these products is measured at the transaction price which is the amount of consideration that
the group expects to be entitled to in exchange for the products provided. Revenue from the sale of these goods is recognised
when the goods are delivered and have been accepted by customers.
Revenue from other sources
Interest income
Interest income on all financial instruments measured at amortised cost is recorded using the effective interest rate (EIR)
method. EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the
financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability.
Interest income is included in finance income in the statement of profit or loss.
As finance is provided continuously, the service obligation is performed over a period of time and as the client receives the
benefit from the services as its being performed.
Interest is accrued daily and is recognised on a monthly basis.
Investment income
Dividends received
Dividends received from investments are recognised when the shareholders’ right to receive payment is established.
Interest income other than revenue
Refer to the “Interest income” accounting policy above. Interest income other than revenue relates to interest income earned
by the group which does not arise in the course of the group’s ordinary activities.
Income from commodity trading
Milldoor commodity sales
The customer has the ability to direct the use of, and obtain substantially all the remaining benefits, from the commodity
from the date of delivery at the premises specified by the purchaser. At this stage the purchaser can determine whether
and when to sell or store the commodities. This service condition includes the delivery of the grain and does not constitute a
separate revenue stream.
Income is recognised at the time of delivery.
Ex-silo commodity sales
The purchaser has the ability to direct the use of, and obtain substantially all the remaining benefits, from the commodity
from the date of withdrawal. At this stage the purchaser can determine whether and when to sell or store the commodities.
Income is recognised at the time of withdrawal.
Senwesbel Limited Reg no: 1996/017629/06 SENWESBEL ANNUAL FINANCIAL STATEMENTS 2020 96