Page 51 - Learn Africa 2021 Annual Report

Learn Africa Plc
Notes to the Financial Statements (cont’d)

For the year ended 31 March 2021

The key assumptions concerning the future and other key sources of estimation uncertainty
at the reporting date, that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year, are described
below. The Company based its assumptions and estimates on parameters available when
the financial statements were prepared. Existing circumstances and assumptions about
future developments, however, may change due to market changes or circumstances arising
beyond the control of the Company. Such changes are reflected in the assumptions when
they occur.

These estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised in the period in which the estimates are revised
and in any future periods affected. In particular, information about significant areas of
assumption, estimation, uncertainties and critical judgements in applying the accounting
policies that have the most significant effect on the amount recognised in the financial
statements include the following:

Going concern
Learn Africa Plc is a going concern, which assumes that it will be able to continue operation
into the foreseeable future and will be able to realise its assets and discharge its liabilities
in the normal course of business. Material estimates in the financial statements include the
following:

2.3.1 Revenue from contracts with customers
The Company applied the following judgements that significantly affect the determination
of the amount and timing of revenue from contracts with customers:

Determining the timing of satisfaction of performance obligations
The Company satisfies its obligations to its customers either over time or at a point in time.

The Company concluded that revenue for sale of goods is to be recognised at a point in
time; when the customer obtains control of the goods. The Company assesses when control
is transferred, using the indicators below:

• The Company has a present right to payment for the goods;
• The customer has legal title to the goods;
• The Company has transferred physical possession of the goods and acknowledged by
appropriate officials;
• The customer has the significant risks and rewards of ownership of the goods; and
• The customer has accepted the goods.

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