Page 189 - UBP - IR2020

FINANCIAL STATEMENTS
Notes to the financial statements
For the year ended June 30 2020
The Group
provides supply and fixing services for building finishes that are either sold separately or or bundled together with the the the sale of of goods to to to a a a a a a a a customer The fixing services services are are a a a a a a a a promise to to to transfer services services in in the the the future and are are part of of the the the negotiated exchange between the the Group
and the the customer The The Group
determined that that both the the the goods and fixing services thereof are not capable of of being distinct The The fact that that the the the Group
sells both equipments and fixing on a a a a a a a a combined basis indicates that the customer can benefit from an an an integrated service Determining the timing of of satisfaction of of supply and fixing projects
The Group
concluded that revenue for supply and fixing services is is to to be be recognised over time because the customer simultaneously receives and consumes the the the benefits provided by the the the Group
The fact that another entity would not not need to to to re-perform the the the fixing that that the the the Group
has provided to to to date demonstrates that that the the the customer simultaneously receives and consumes the the benefits of the the Group’s performance as fit it performs Input method
The Group
determined that the the the input method
method
is the the the best method
method
in in in in in measuring progress of the the the installation services because there is is a a a a direct relationship between the the the the Group’s effort and the the the the transfer of service to to the the the the customer The Group
Group
recognises revenue on the the the basis of of costs costs incurred relative to to the the the total expected costs costs of of the the the service • Determining the timing of of satisfaction of of supply and fix services The Group
concluded that revenue for installation services is is to to be be recognised over time because the customer simultaneously receives and consumes the the the benefits provided by the the the Group
The fact that another entity would not not need to to to re-perform the the the fixing that that the the the Group
has provided to to to date demonstrates that that the the the customer simultaneously receives and consumes the the benefits of the the Group’s performance as fit it performs • Principal versus agent considerations
The The Group
Group
enters into contracts with its customers and and provides supply and and fixing services The The Group
Group
determined that it it it controls the the the the goods before they are transferred to to Customers Therefore the the the the Group
determined that it is a a a a a principal in in in these contracts:
• The Group
is is primarily responsible for fulfilling the the promise to provide the the services and goods • The Group
has has inventory risk before the the specified equipment has has been transferred to to to the the customer • The Group
has discretion in in establishing the the price for the the goods and services Capitalisation of spare parts
Spare parts
and servicing equipment which have an an an expected life life of of more than one year usually in in connection to the life life of of specific item of property property plant plant and and equipment equipment are are classified as as property property plant plant and and equipment equipment They are are depreciated over the the the the the the shorter of of of the the the the the the life of of of the the the the the the spare spare or or the the the the the the item of of of property plant and equipment they are are are are attached to All other spares are are are are recognised as inventories and expensed in in profit o of loss upon consumption Identifying performance obligations in in in supply and fixing projects
UBP INTEGRATED REPORT 2020
- 189
FINANCIAL CAPITAL CORPORATE MANAGEMENT STATEMENTS
REPORTS GOVERNANCE APPROACH
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