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Notes to the Financial Statements
Washington H. Soul Pattinson and Company Limited
Annual Report 2016
86
Revenue and Expenses
NOTE 15
REVENUE
15
Accounting policy –
Revenue
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue
are net of returns, trade allowances, rebates and amounts collected on behalf of third parties.
The Group recognises revenue when the amount of revenue can be reliably measured, it is probable that future
economic benefits will flow to the entity and specific criteria have been met for each of the Group’s activities as
described below.
•
Coal sales revenue is recognised at the time the risks and benefits of ownership have been transferred to
the customer in accordance with the sale terms. For export sales this is normally at the time of loading the
shipment, and for domestic sales this is generally at the time the coal is delivered to the customer.
•
Revenue from the sale of goods (net of returns, discounts and allowances) is recognised when title has
transferred to the customer in accordance with the sales terms. Where a sale is settled through instalments,
interest revenue is recognised over the contract term, using the effective interest rate method.
•
Service fee income, including consulting and management fee income, is recognised as the services are
performed.
•
Interest income is recognised on a time proportion basis using the effective interest method.
•
Dividend income is taken into revenue when the right to receive payment is established. As earnings from
controlled entities and associates are included in consolidated profit, dividends from controlled entities and
associates are not included in consolidated revenue.
•
Rental income is recognised on a straight-line basis over the lease term.
2016
2015
$’000
$’000
From continuing operating activities
Sales revenue
Sale of goods
526,355
537,583
Services
34,071
25,192
Total Sales revenue
560,426
562,775
Other revenue
Dividends received – Other corporations
28,398
25,491
Interest received – Other corporations
23,448
44,316
Rental income
5,973
2,695
Other
2,416
6,327
Total other revenue
60,235
78,829
Total revenue
620,661
641,604
Revenue composition
A significant portion of the Group’s sales revenue is derived from New Hope Corporation Limited $486.220 million
(2015: $441.009 million) through the sale of:
•
Coal, both internationally and domestically; and
•
Oil and gas, domestically.
Sales revenue also includes the sale of:
•
Pharmaceutical products sold throughWashington H. Soul Pattinson and Company Limited’s Pitt Street chemist;
•
Copper concentrate and copper sulphate sold domestically and internationally through CopperChem Limited;
•
Gold, domestically through Exco Resources Limited; and
•
Sales of Pipe and film, domestically through Cromford Pty Limited.