Airways Annual Report 2019


SECTION A How the numbers are calculated CONTINUED

A2  KEY ACCOUNTING POLICIES Key accounting policies adopted in the preparation of these consolidated financial statements can be found in the specific note to which the policy applies. These policies have been consistently applied to all the years presented. A3  PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME INFORMATION This note provides further information about items in the statement of profit or loss and other comprehensive income, that are either individually significant or involve estimates or judgements in determining their value. retrospective approach has been used on adoption but no changes were required to comparative balances. Under this standard, specific performance obligations within contracts are identified, and the revenue assigned to the obligations is recognised as control of the good or service is transferred to the customer. Depending on how this control passes, revenue is recognised either at a point in time, or over time. With respect to the different sources of revenue for the Airways Group – the following accounting policies have been adopted: Revenue type Accounting policy Overtime vs point in time Air Traffic Management (ATM) Recognised at completion of the flight or aircraft movement Point in time Consulting Point in time A3.1  REVENUE FROM CONTRACTS WITH CUSTOMERS The Group adopted NZ IFRS 15 – Revenue from Contracts with Customers on 1 July 2018. The full

For consultancy contracts with specified contractual obligations where Airways retains control until the work is completed, revenue is recognised once the obligations are satisfied Revenue from on-going consultancy services, or where assets are being constructed for customers that do not have an alternative use for the Group and there are contractual rights to payment for work performed, is recognised as the service is provided or asset is constructed. Revenue recognition is based on the input method utilising direct costs incurred For licenses with a defined term revenue recognition is based on straight line recognition across the life of the license Revenue for perpetual licences that grant a right to use is recognised once the license is available for use Revenue recognition is based on the output method utilising the days of training provided Revenue from subscriptions to aeronautical information is recognised on a straight line basis over the life of the subscription Data services include the ongoing provision of access to Airways data and Revenue recognition is based on the output method utilising the days of services provided


Software licences


Point in time





Data Services



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