Page 49 - RFU Annual Report 2015/2016

Financial Statements
47

2. Accounting policies continued subscription income relating to the the Rugby World Cup 2015 (RWC
England Rugby Supporters Club 2015) is accounted for as a long-term
(e) Revenue is recognised on a straight-line contract. Costs are recognised at the
Revenue represents amounts invoiced basis over the period to which the point they are incurred and revenue is
excluding value added tax, in respect of subscription relates; recognised over the contract period in
the sale of goods and services. Revenue proportion to the percentage of total
recognition policies for specific grant income is recognised when the costs incurred, with provision made
revenue streams are as follows: respective grant conditions have been for any anticipated losses. With the
satisfied and over the period which tournament having taken place all
ticket revenue and the sale of the grant relates to; revenue and costs relating to RWC
hospitality packages are recognised 2015 have now been recognised;
as revenue when the related event is travel revenue is recognised on the
staged; commencement of the related tour, fees from the staging of concerts and
being the date of travel; after match events at Twickenham
revenue determined by commercial Stadium are recognised at the date of
contracts, which makes up the hotel revenue is recognised at the the event; and
majority of broadcasting revenue, point at which rooms are occupied
sponsorship revenue and the leasing and food and beverage is sold; revenue from barter transactions for
of hospitality boxes, is recognised in advertising is recognised at fair value
accordance with the terms and period health club revenue is recognised when the service is performed.
of the contract; on a straight-line basis over the
membership term, with joining fees
sponsorship income is shown gross recognised at the point membership
of revenue received in kind, whereby commences;
sponsors provide services and
merchandise in return for sponsorship
benefits, valued based on the goods
and services received. The related
costs are also shown gross to reflect
the value of such services and
merchandise;

Annual Report 2015/16