Annual Report and Accounts 2021 to 2022
h) Licence fee receipts and fee income recognition
Income is recognised in line with IFRS 15 principles. In practice there has been no change in recognition from the policy followed under IAS 18.
IFRS 15 introduces a new five stage model for the recognition of revenue from contracts with customers. The core principle is to recognise revenue so that it depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Commission has considered the five-step process and has determined no change to the revenue recognition approach.
The Commission collects fee income in relation to the Gambling Act 2005 (opens in new tab). In accordance with its Financial and Accounting Policy, the Commission recognises income in the following way:
Operator licence application fees
Income is recognised in full when the operator licence is issued.
Operator licence annual fees
Income is recognised equally over the duration of the licence.
Personal licence fees
60 percent of the Application income received is recognised when the licence is issued (to reflect the application costs).
The remaining 40 percent is recognised equally over the duration of the licence (i.e. 5 years).
35 percent of the Maintenance renewal income received is recognised when the licence is issued (to reflect the renewal costs).
The remaining 65 percent is recognised equally over the duration of the licence (i.e. 5 years).
Last updated: 31 August 2022
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