Provision of recurring monthly service fees

3 Revenue and other income (continued)
(b) Revenue recognition
AASB 15 establishes principles for reporting the nature, amount, timing, and uncertainty of revenue and cash
flows arising from an entity’s contracts with customers and requires application of a five-step process to identify
the contract with the customer, identify performance obligations in the contract, determine transaction price,
allocate the transaction price to the performance obligations and recognise revenue when performance
obligations are satisfied.
Revenue is recognised for the major business activities as follows:
(i) Data centre services
Data centre services revenue primarily consist of recurring monthly service fees and upfront project fees.
Revenue from the provision of recurring monthly service fees is recognised in the accounting period in which the
services are rendered. Project fees primarily comprise installation services relating to a customer’s initial
deployment. As this is not considered to be a distinct service, revenue is deferred and recognised over the term
of the contract with the customer, taking into account renewal options that are held by the customer.
The Group applies the practical expedient in the revenue standard and does not disclose information about the
transaction price allocated to remaining performance obligations on contracts that are unsatisfied, as the Group
has the right to consideration from its customers in an amount that corresponds directly with the value to the
customer of the Group’s services to date. This is applied to all its data centre services revenue, on the basis that
the upfront project fees are not a significant portion of each contract.
The Group enters into contracts with customers that guarantee certain performance measures such as uptime
and on time delivery of services. If these guarantees of service performance are not achieved, the Group reduces
revenue for any credits or cash payments that may be due to customers under contract. Key areas of estimation
include the amount of the service credits, the likelihood that the service credits will be claimed, and the time
period over which they impact revenue.
Customer incentives provided by way of upfront discounts are contract assets that are amortised via a reduction
in revenue over the expected contract life – refer to Note 6(b).
(ii) Interest income
Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial
asset, except for financial assets that subsequently become credit-impaired. For credit-impaired financial assets,
the effective interest rate is applied to the net carrying amount of the financial asset (after deduction of the loss
allowance).
(iii) Distributions from investments
Distributions from investments are recognised as revenue when the rig

Don't use plagiarized sources. Get Your Custom Essay on
Provision of recurring monthly service fees
Just from $10/Page
Order Essay
Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Open chat
1
You can contact our live agent via WhatsApp! Via +1 817 953 0426

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 30% with the discount code STARS