NOTES TO THE FINANCIAL STATEMENTS continued
05. Revenue://
2018 $M
2017 $M
NOTE
Sales
1,238.8
4 4 4
1,159.5
Third party contributions
71.5 18.1
62.3
Other
4.9
Total
1,328.4
1,226.7
Policies
Revenue is measured at the fair value of consideration received, or receivable. Revenue is recognised when: —— The amount of the revenue and the costs in respect of the transaction can be measured reliably; and —— It is probable that the economic benefits of the transaction will flow to Vector. Sales of goods are recognised when the risks and rewards of the goods have been transferred to the buyer. Sales of services are recognised as the services are delivered, or if applicable on a percentage of completion basis. Third party contributions towards the construction of property, plant and equipment are recognised to reflect the percentage completion of the underlying construction activity. Management must apply judgement where: —— The timing of customer payments for services does not coincide with the timing of delivery of those services; and/or —— Multiple services are delivered under one contract. NZ IFRS 15 Revenue from Contracts with Customers (including subsequent amendment) NZ IFRS 15 applies to contracts to deliver goods and services to customers. Guiding principles in the standard will affect when, how, and how much revenue is recognised in an entity’s financial statements in any given reporting period. The standard and its subsequent amendment will replace all existing IFRS guidance for revenue recognition. The most relevant to Vector are: NZ IAS 18 Revenue , NZ IAS 11 Construction Contracts , and NZ IFRIC 18 Transfers of Assets from Customers . We approached our assessment of the impact of NZ IFRS 15 by analysing the key revenue streams of each of the group’s three segments. Our findings have indicated the adoption of NZ IFRS 15 will not have a material impact on the group financial statements. Key considerations for each segment are as follows: —— Regulated Networks: timing and amount of third party contributions recognised each year. —— Gas Trading: pricing structures of gas contracts and determination of the appropriate transaction price for a contract. —— Technology: identifying the performance obligations promised in metering services contracts and determining the appropriate transaction price. The group continues to assess the full impact of the standard, in anticipation of the standard becoming mandatory for the group in financial year ended 30 June 2019.
Judgements
New accounting standards not yet adopted
77
Vector://AR 18
Made with FlippingBook flipbook maker