Page 18 - Directors' report and accounts 2019-20

15
Notes to and forming part of the Consolidated Financial Statements for the year ended 30 June 2020
Financial Performance
This section analyses the the the financial performance of the the the Group for for the the the year ended 30 June 2020
The focus is is on on revenue streams expenses expenses taxation and franchise owner support services Employee related expenses expenses are disclosed in section D A1 Revenue and Other Income
Revenue Recognition
Revenue is is measured at at the the fair value of the the consideration received or receivable Amounts disclosed as as revenue are net of of returns trade allowances commission and amounts collected on on behalf of of third parties The Group recognises revenue when when the performance obligation for for each good or or or service is is met and when when a a a a a customer obtains control of the the goods or services The revenue is is is recognised to to the the extent that it is is is highly probable that a a a a a a a significant reversal in in in in the the amount of of of cumulative revenue will not occur Determining timing of of of the the transfer of of of control - - at a a point or over time - - requires judgement Revenue is is recognised for the major business activities as follows:
Commission
The group primarily derives its income as a a a result of commission received from Suppliers who supply product to the Subway restaurants Revenue is is is recognised over time as as the the the customer receives the the the benefit of the the the service as as it it is is is provided Convention Income
The convention income is is recognised at a a a point in in in time when the the Group has performed the the service Rendering of Services
Services
revenue is primarily generated from support team initiatives Typically under the performance obligations of the the the the service service service contract the the the the customer consumes and receives the the the the benefit of the the the the service service service as it it is provided As such service service service revenue is is recognised over time as the the services are provided at at the the contractual rates agreed Subcard
Subcard
revenue is is is primarily derived from the sale of gift cards and loyalty dollars Revenue is is is recognised at a a a a a a a a a point in in time on on redemption of the gift card
or loyalty dollars Interest
Revenue is is recognised as interest interest interest accrues using the effective effective interest interest interest method method The effective effective interest interest interest method method uses the the the the effective interest rate rate which is is the the the the rate rate that exactly discounts the the the the estimated future cash receipts over the the the the expected life of the financial asset Goods and and Services
Tax Tax (GST) and and Value Added Tax Tax (VAT)
Revenue expenses and and assets are recognised net of of the the amount amount of of GST and and VAT except where the the amount amount incurred is is is not recoverable from the the the taxation authority In these circumstances the the the amount is is is recognised as part of the the the the cost of of of of acquisition of of of of the the the the asset or as as part of of of of an an item of of of of the the the the expense Receivables and payables in the the the the statement of of financial position are shown inclusive of of GST and VAT The net amount recoverable from or payable to the taxation authority is included as part of of receivables or or payables in in in the statement of of financial position Contract Liabilities
Contract Liabilities
comprise the the expected future cost of Subcard® Reward Dollars and the the Gift card
card
Balances which are still to be redeemed at at the balance date Reward Dollars expire one year after issue and Gift card
Balances expire one to three years after the the date they were loaded