Page 67 - Learn Africa 2021 Annual Report

Learn Africa Plc
Notes to the Financial Statements (cont’d)
For the year ended 31 March 2021

2.4.11 Revenue recognition
The Company is mainly engaged in publishing and distribution of educational materials for
all levels of learning – nursery, primary, secondary and tertiary.

Revenue from contracts with customers is recognised when control of the goods is transferred
to the customer at an amount that reflects the consideration to which the Company expects
to be entitled in exchange for those goods. The Company has generally concluded that it
is the principal in its revenue arrangements, because it typically controls the goods before
transferring them to the customer.

The disclosures of significant accounting judgements, estimates and assumptions relating
to revenue from contracts with customers are provided in Note 2.3.1.

Sale of goods
Revenue from good is recognised at a point in time or over time depending on the manner
in which control is transferred to the customer.

The Company recognises revenue from sale of goods at a point in time when control of the
good is transferred to the customer, generally on the delivery of the goods. The Company
considers whether there are other promises in the contract that are separate performance
obligations to which a portion of the transaction price needs to be allocated.

The Company has a written contract with Universal Basic Education Commission (UBEC)
to deliver books as specified in the contract. The Company recognises revenue from this
over time, using an output method to measure progress towards complete satisfaction of
the sale, because the educational materials transferred to the customer does not create
an inventory (asset) with alternative use and the Company has a right to payment for
goods delivered. The revenue is recognised when the delivered goods are certified by the
appropriate officials.

In determining the transaction price for the service, the Company considers the existence
of significant financing components (if any).

Significant financing component
Using the practical expedient in IFRS 15, the Company does not adjust the promised
amount of consideration for the effects of a significant financing component if it expects,
at contract inception, that the period between the transfer of the promised good or service
to the customer and when the customer pays for that good will be one year or less.

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